Why did foreign investors keep selling Korean securities in July?

The Bank of Korea said the sell-off narrowed as the stock market correction discouraged foreigners from rebalancing their portfolios. It also cited resurgent Middle East tensions and lingering concerns over excessive investment in artificial intelligence infrastructure.

How much did foreigners sell in Korean stocks and bonds in July?

Offshore investors sold a net $20.7 billion worth of stocks and a net $960 million worth of bonds. Combined net sales of Korean securities reached $21.65 billion in the month.

What happened to the KOSPI and the Korean won in July?

The KOSPI fell more than 20 percent in July, mainly on heavy losses in tech shares. The won strengthened to 1,424 won per dollar at the end of the month, compared with 1,549.4 won a month earlier.

Foreigners remain net sellers of Korean assets for 6th month in July: BOK

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Summary

Foreign investors remained net sellers of Korean securities for the sixth straight month in July, according to Bank of Korea data. Offshore investors sold a net $21.65 billion in stocks and bonds, while the KOSPI fell more than 20 percent on heavy tech-share losses. The won strengthened to 1,424 won per dollar at the end of July from 1,549.4 won a month earlier.

Key Facts

Foreign investors sold a net $20.7 billion worth of stocks in July and a net $960 million worth of bonds.
The BOK said the sell-off narrowed from the previous month as stock market correction discouraged foreigners from rebalancing portfolios.
The BOK linked the weakness to resurgent Middle East tensions and lingering concerns over excessive investment in artificial intelligence infrastructure.
The KOSPI fell more than 20 percent in July, mainly because of heavy losses in tech shares.

By Yonhap

Published Aug 13, 2026 12:12 pm KST

The benchmark KOSPI and Kosdaq are displayed in the dealing room of Hana Bank in Seoul, Thursday. Yonhap

Foreign investors remained net sellers of Korean securities for the sixth consecutive month in July, central bank data showed Thursday, amid a broader market readjustment.

Offshore investors sold a net $21.65 billion worth of local stocks and bonds last month, following net sales of 30.72 billion in June, according to data from the Bank of Korea (BOK).

They have remained net sellers since February.

Foreign investors sold a net $20.7 billion worth of stocks and a net $960 million worth of bonds in July.

The BOK said the sell-off narrowed from a month earlier as the stock market correction discouraged foreigners from rebalancing their portfolios amid resurgent Middle East tensions and lingering concerns over excessive investment in artificial intelligence (AI) infrastructure.

The Korea Composite Stock Price Index (KOSPI) fell more than 20 percent in July alone due mainly to heavy losses in tech shares.

The BOK said reduced foreign portfolio rebalancing also helped the Korean won strengthen against the U.S. dollar during the cited period amid the greenback's recent weakness globally.

The won was trading at 1,424 won per dollar at the end of July, compared with 1,549.4 won a month earlier.

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