Seoul: Foreign investors remained net sellers of South Korean securities for the sixth consecutive month in July, central bank data showed Thursday, amid a broader market readjustment.

According to Yonhap News Agency, offshore investors sold a net US$21.65 billion worth of local stocks and bonds last month, following net sales of $30.72 billion in June, as reported by the Bank of Korea (BOK). The trend of net selling has persisted since February.

Foreign investors offloaded a net $20.7 billion worth of stocks and a net $960 million worth of bonds in July. The BOK noted that the sell-off narrowed compared to the previous month, as the stock market correction deterred foreigners from rebalancing their portfolios. This hesitancy was attributed to resurgent Middle East tensions and persistent concerns over excessive investment in artificial intelligence (AI) infrastructure.

The Korea Composite Stock Price Index (KOSPI) experienced a significant decline, falling more than 20 percent in July, primarily due to substantial losses in tech shares. This downturn further influenced foreign investment behavior.

The BOK also highlighted that the reduced foreign portfolio rebalancing contributed to the strengthening of the Korean won against the U.S. dollar during the period. The won was trading at 1,424 won per dollar at the end of July, compared to 1,549.4 won a month earlier, amid the recent global weakness of the greenback.