Global funds cautiously return to the South Korean stock market.

The South Korean stock market is expected to see the largest single-week net inflow of foreign capital since early April, indicating that after a historic sell-off, global investors are starting to return to this $4.1 trillion stock market. Data shows that as of Thursday this week, foreign funds have net bought $2 billion in South Korean stocks. On Friday, foreign capital is anticipated to continue net buying over $1 billion in Korean Composite Stock Price Index constituents. In previous months, the South Korean stock market faced nearly continuous outflows, with the withdrawal scale exceeding $100 billion this year. The return of foreign capital has driven the benchmark index, the Korean Composite Stock Price Index, to rise on each trading day this week, with a cumulative increase of more than 10%. As leverage positions in the crowded AI sector have been cleared, signs of alleviation from the market's extreme volatility are emerging.