Foreign investors continue selling South Korean stocks while buying bonds

by Shin Dong-kun Posted : August 21, 2026, 09:02Updated : August 21, 2026, 09:06
An electronic board at Hana Banks headquarters in Seoul shows various figures on July 29 2026 AJP Yoo Na-hyun
An electronic board at Hana Bank's headquarters in Seoul shows various figures on July 29, 2026. AJP Yoo Na-hyun
SEOUL, August 21 (AJP) - Foreign investors extended their selling streak in South Korean stocks to seven consecutive months, offloading more than 31 trillion won worth of listed shares. By contrast, they remained net buyers of domestic bonds for a fourth straight month, investing about 2.4 trillion won.

According to the Financial Supervisory Service (FSS) on Friday, foreigners were net sellers of 31.66 trillion won worth of listed stocks in July. They sold 30.78 trillion won on the main KOSPI and 889 billion won on the junior KOSDAQ.

Foreign holdings of South Korean stocks totaled 2,255 trillion won at the end of July, accounting for 35.8 percent of total market capitalization, down 653 trillion won from 2,909 trillion won the previous month.

The financial watchdog said the decline in holdings exceeded net selling as a sharp market downturn reduced the value of shares held.

By region, the U.S. held 978 trillion won, accounting for 43.4 percent of foreign holdings, followed by Europe at 676 trillion won, Asia at 310 trillion won and the Middle East at 45 trillion won.

By contrast, foreign investors bought 4.77 trillion won worth of listed bonds in July, while 2.38 trillion won in bonds matured, resulting in net investment of 2.39 trillion won.

They held 336 trillion won worth of listed bonds at the end of July, up 1.3 trillion won from a month earlier and accounting for 11.7 percent of all outstanding bonds.

Foreign investors mainly invested in longer-term bonds. They put 2.6 trillion won into government bonds while withdrawing about 200 billion won from special bonds. They also invested 5.18 trillion won in bonds with one to less than five years remaining and 3.15 trillion won in those with five years or more left, while pulling 5.94 trillion won from short-term bonds with less than a year to maturity.

AJP Takeaways
• Foreign investors sold 31.66 trillion won worth of South Korean listed stocks in July 2026, extending their net selling streak to seven consecutive months.
• Foreign investors sold 30.78 trillion won on the KOSPI and 889 billion won on the KOSDAQ in July 2026, contributing to a sharp decline in their total stock holdings.
• Foreign holdings of South Korean stocks fell to 2,255 trillion won at the end of July 2026, down 653 trillion won from the previous month and equal to 35.8 percent of total market capitalization.
• Foreign investors remained net buyers of South Korean bonds for a fourth consecutive month in July 2026, recording 2.39 trillion won in net investment and raising their bond holdings to 336 trillion won.
• Foreign investors favored longer-term South Korean bonds in July 2026, investing 5.18 trillion won in bonds with one to less than five years remaining and 3.15 trillion won in bonds with five years or more to maturity, while withdrawing 5.94 trillion won from bonds maturing within a year.