Data from the Korea Exchange reveals that foreign investors have maintained a net selling stance in the South Korean market for nearly all trading days this month, barring just four. The cumulative net selling volume by these investors in the KOSPI market has soared to around KRW 12 trillion, with a notably swift pace of capital withdrawal. The selling spree has been predominantly focused on the large - cap semiconductor industry.

There has been a marked shift in how foreign investors allocate their assets. The Chinese technology sector has emerged as one of the primary recipients of these inflows. Last week, the 'TIGER China Hang Seng Tech' ETF witnessed the highest level of net foreign purchases. Moreover, three Chinese technology - related ETFs made it to the top ten in terms of net foreign buying.

In the meantime, foreign investors have also substantially boosted their holdings in inverse ETFs, which are bets on a decline in South Korean stocks. Last week, the 'KODEX 200 Futures Inverse 2x Leveraged ETF' and the 'KODEX Inverse ETF' recorded net buying amounts of KRW 16.3 billion and KRW 11 billion, respectively.