Foreigners remain net sellers of stocks but net purchase ETFs in July
Foreign investors have been net sellers of Korean stocks in July while simultaneously increasing their holdings in exchange-traded funds (ETFs). This shift reflects a strategy to mitigate risk amid market volatility and new government regulations on leveraged products.
Why it matters
The trend highlights how international capital flows are adapting to regulatory changes and economic uncertainty in the South Korean market.
Overseas investors sold Korean shares heavily this month but kept buying exchange-traded funds as volatility rose and regulators tightened rules on leveraged products.
The Korea Exchange logo is displayed in Yeouido, Yeongdeungpo District, western Seoul in this file photo YONHAP Foreign investors were net sellers on Korea's stock markets this month, the country's bourse operator said Sunday, while remaining net buyers of exchange-traded funds (ETF) amid heightened market volatility.
Foreigners offloaded a net 12.1 trillion won ($8.12 billion) on the main bourse and 338.1 billion won on the tech-heavy secondary market through Thursday this month, according to the Korea Exchange (KRX).
The KRX said foreigners were net sellers on the main bourse in eight of the 12 trading sessions through last week. The market was closed Friday for Constitution Day.
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