Seoul: Foreign investors remained net sellers of South Korean equities for the fifth consecutive month in June, central bank data showed Tuesday, despite a tech-led rally in the local stock market.

According to Yonhap News Agency, offshore investors sold a net US$30.72 billion worth of local stocks and bonds last month, following net sales of $26.15 billion in May. They have remained net sellers since February.

Breaking down the figures, foreign investors sold a net $32.37 billion worth of stocks in June, while purchasing a net $1.65 billion worth of bonds. The Bank of Korea (BOK) stated that net foreign selling widened from a month earlier as investor sentiment weakened amid concerns over excessive investment in artificial intelligence (AI) infrastructure.

Foreign investors also reduced their holdings of Korean stocks as part of portfolio rebalancing during the market rally, accelerating net capital outflows. Meanwhile, South Korea's inclusion in the World Government Bond Index (WGBI), a key global bond benchmark operated by FTSE Russell, led to net inflows into the bond market. South Korea began a phased eight-month entry into the index in April. The WGBI tracks sovereign debt from more than 20 major economies, including the United States, Japan, and China.