South Korean pension funds, led by the National Pension Service (NPS), switched to net buying of domestic equities in July, marking the first such monthly inflow for the sector in 2026.
The shift in institutional positioning comes as the NPS, one of the largest players in the local market, reversed a period of net selling that had characterized much of the year.
The return of domestic institutional capital provides a counterweight to foreign portfolio investor flows, which have been volatile in emerging Asian markets.
This buying pressure contributed to the stability of the KOSPI index, which has shown signs of recovery momentum in recent sessions.
The index closed higher on Thursday, supported by sustained institutional demand that helped erase early session losses.
The development highlights a broader trend of domestic investors stepping up support for local equities amid global market uncertainty.