Foreign investors remained net sellers of South Korean securities for a sixth straight month in July, unloading a net $21.65 billion in stocks and bonds, according to Bank of Korea data published on August 13, 2026. The total outflow, down from $30.72 billion in June, included net sales of $20.7 billion in equities and $96 million in bonds. The bond reversal was the first month of net foreign selling since South Korea's government bonds were added to the World Government Bond Index in April. The BOK said the broader selloff reflected a deeper Kospi correction led by technology shares, renewed Middle East tensions and concerns about excessive investment in AI infrastructure, while analysts said Korean bonds also became less attractive relative to U.S. Treasuries as higher U.S. yields and weaker currency-hedged returns eroded carry incentives. The won strengthened to 1,424 per dollar at the end of July from 1,549.4 a month earlier, helped by reduced foreign portfolio rebalancing and broader dollar weakness.