breaking

Foreign Investors Exit South Korean Equities Despite Record Market Highs

International investors accelerated their pullback from South Korean stocks as the market climbed to unprecedented levels. Domestic retail buying and artificial intelligence sector strength drove the rally.

Foreign funds logged their fastest outflows from South Korean equity exchange-traded funds on record, according to trading data. The retreat occurred even as the nation's stock index reached all-time highs, buoyed by local investor demand that offset the foreign selling pressure.

The divergence underscores a sharp split in market participation. Domestic retail traders aggressively accumulated positions while international capital retreated, suggesting differing assessments of valuations following the rapid AI-driven rally.

South Korean equities posted a historic monthly rally as the technology sector surged. The concurrent foreign exodus marks a notable shift in the market's composition.