Foreign investors persisted in selling South Korean equities for the fifth consecutive month in June, as per central bank data. Despite a tech-driven surge in the local stock market, offshore investors offloaded a net US$30.72 billion worth of local stocks and bonds last month, following net sales of $26.15 billion in May. Since February, they have consistently been net sellers, with foreign investors selling a net $32.37 billion worth of stocks in June while purchasing a net $1.65 billion worth of bonds.
South Korea’s inclusion in the World Government Bond Index (WGBI) resulted in net inflows into the bond market. The WGBI, a significant global bond benchmark operated by FTSE Russell, began South Korea’s phased eight-month entry in April. The index monitors sovereign debt from more than 20 major economies, including the United States, Japan, and China.
Seoul shares faced extended losses amid concerns over the Middle East tensions and uncertainties in the artificial intelligence (AI) sectors. The benchmark Korea Composite Stock Price Index (KOSPI) traded 139.03 points, or 2.04 percent, lower at 6,667.90 as of 11:20 a.m. on Tuesday, following a 0.56 percent lower opening. The previous session witnessed a significant technology stock sell-off, with the KOSPI plummeting by 9 percent.
