Foreign investors offloaded a record net 4.7 trillion won ($3.3 billion) of South Korean equities in May, marking the largest monthly sell-off in the market's history.
The data, released Friday, underscores a deepening liquidity crisis for the KOSPI as overseas capital continues to flee despite regulatory efforts to retain it.
The unprecedented outflow stands in stark contrast to Seoul’s recent strategy to lure exchange-traded fund capital back to its domestic markets.
According to reports from The Korea Herald, the initiative designed to bolster local liquidity and re-engage foreign institutional investors is failing to gain traction.
Instead of reversing the trend, the market saw accelerated selling pressure throughout the month.
This record-breaking exit raises questions about the structural appeal of Korean equities amid broader global portfolio rebalancing.