South Korea's equity market has plunged 33% in July, a record monthly decline that has pushed the benchmark Kospi to its lowest valuation in history.

Despite the steep discount, the sell-off has failed to attract meaningful interest from global investors who typically seek value in distressed markets.

The lack of dip-buying underscores a deepening liquidity crisis in the region.

Foreign capital, which had already been retreating, has not stepped in to provide a floor for prices.

Instead, the market continues to face downward pressure as institutional buyers remain cautious about the broader economic outlook and geopolitical risks.

This development follows a period of intense selling by overseas funds.