This study examines whether the dividend preference of foreign investors exists in Korean stock market and suggests explanations for the preference through the conventional finance theories and the dividend catering theory. The main findings of this study are summarized as follows. First, foreign investors show a net buying position on the dividend announcement date and the cum-dividend date and it has same propensity during 10 days before the ex-dividend date. Second, this study finds that there is a statistically significant positive correlation between foreign investors' trading that indicates dividend preference and last year's dividend yield. Third, after examining whether a catering theory of dividend is applied to the foreign investor group, this study finds that a negative correlation between dividend preference of foreign investors and investor sentiment index. Also, there is a positive correlation between dividend preference of foreign investors and modified dividend premium. Forth, this study finds that there is a statistically significant positive correlation between the dividend preference of foreign investors and the long term performance that is measured by BHAR. On the contrary, there is a statistically significant negative correlation between the dividend preference of the foreign investors and the long term performance when investor sentiment index is low or modified dividend premium is high. It implies that foreign investors aggressively invest in stock with high dividend yield for earning even though it was against the long term perspective.