Foreign investors sell South Korean stocks but buy ETFs in June

KRX data shows a split strategy as overseas capital trims direct equity exposure while maintaining fund flows, following a record sell-off in May.

By Handelsavisen Newsroom · Automated 2026-07-19 01:25 UTC · 1 min read

Foreign investors reduced their direct holdings in South Korean equities during June, according to data from the Korea Exchange (KRX).

While overseas capital was net sellers of individual stocks, it remained a net buyer of exchange-traded funds (ETFs) for the month, signaling a nuanced approach to the market amid heightened regional tensions.

7 trillion won ($3.3 billion) of South Korean equities in May.

The divergence in trading activity highlights a shift in how foreign capital is accessing the Korean market.

By favoring ETFs over direct stock purchases, investors may be seeking broader market exposure with lower transaction costs or reduced idiosyncratic risk, rather than targeting specific large-cap names.

This pattern contrasts with the aggressive direct selling seen in previous months.

The June data follows a period of intense outflows, with foreign investors offloading a record net 4.7 trillion won ($3.3 billion) of South Korean equities in May.