Foreign investors maintained their net selling stance on South Korean equities in June, marking the fifth consecutive month of outflows, according to data from the Bank of Korea released Tuesday.
The persistent divestment occurred even as the local stock market experienced a rally driven by the technology sector, highlighting a disconnect between domestic price action and foreign capital flows.
7 trillion won ($3.3 billion) in May, which stood as the highest monthly outflow in the market's history.
The latest data underscores a deepening trend of foreign capital withdrawal from the Korean market.
This follows a record-breaking net sell-off of 4.7 trillion won ($3.3 billion) in May, which stood as the highest monthly outflow in the market's history.
The continuity of selling pressure into June suggests that foreign institutional investors remain cautious about the region's risk profile despite recent equity gains.
The sustained outflows present a headwind for the Korean won and local equity valuations, as foreign investors are typically key drivers of liquidity in the market.