Citigroup: The trend of foreign capital outflow from the South Korean stock market is likely to continue.

Citigroup noted that although the outlook for South Korea's current account surplus has improved, the momentum of foreign investors leading to capital outflows from the Korean stock market may continue. Citigroup economist Jin-Wook Kim wrote in a report that driven by portfolio rebalancing and profit-taking, foreign stock investors' capital outflows accelerated to $30.5 billion in June, up from $27.9 billion the previous month. As of the end of June, the share of foreign investors in the South Korean stock market has increased from 32.9% in December last year to 38.9%. With strong growth in semiconductor exports driving the increase, the bank has raised its forecast for South Korea's current account surplus in 2026 to 16.4% of GDP, higher than the previous forecast of 13.2%.