Foreign investors have rarely turned to buyers in the main bourse this year.

Out of the past eight months, net monthly purchases were recorded in only two months, and the accumulated net selling scale is nearing 170 trillion won, maintaining a record-high level.

While the first half of the year was largely characterized by profit-taking and portfolio rebalancing driven by the surge in the Kospi and a heavy concentration in large-cap semiconductor stocks, analysts point out that recent external uncertainties—such as concerns over U.S. rate hikes, rising Treasury yields, and soaring international oil prices—are adding to foreigners' avoidance of risky assets.

According to Koscom Check today (September 1st), foreigners have net sold a total of 169.658 trillion won in the securities market this year up to 1:24 PM today.

This is approximately 36 times the annual net selling of 4.6546 trillion won recorded last year.

By month, the only months this year when foreigners recorded net purchases on the Kospi were January at 118.6 billion won and April at 1.1283 trillion won.

They net sold over 21 trillion won in February and over 35 trillion won in March, briefly returned to a buying dominance in April, and then continued a selling streak for four consecutive months starting in May.

In particular, they net sold 44.7 trillion won in May and 48.6 trillion won in June, and offloaded about 9.9 trillion won and 10.2 trillion won in July and August, respectively.

This contrasts with last year.

Last year, foreigners posted net purchases for a total of six months on a monthly basis, including May to July, September, October, and December.

On an annual basis, foreigners were net sellers last year, but large-scale selling like this year's was not observed.

The background behind foreigners' selling appears to have varied somewhat by period this year.

Analysts noted that in the first half, as the sharp rise in the Kospi and large-cap semiconductor stocks increased the portfolio weighting of South Korean stocks, profit-taking and rebalancing-oriented selling accounted for a significant portion.

However, recently, as the possibility of U.S. rate hikes has re-emerged alongside simultaneous rises in long-term Treasury yields and international oil prices, investment sentiment toward risky assets overall appears to be shrinking.

Foreign supply and demand are also intertwined with the won-dollar exchange rate.

Huh Jae-hwan, an analyst at Eugene Investment & Securities, analyzed, "Even while the Kospi surged significantly in the first half of this year, the value of the Korean won was the weakest among major currencies," adding, "If semiconductor-focused market concentration recurs, downward pressure on the won is likely to grow again alongside foreign selling."

The spaces vacated by fleeing foreigners have recently been filled by "other corporations."

Other corporations have continued their buying streak in the securities market for 10 consecutive trading days as of today, and have net bought over 1 trillion won over the past 9 trading days.

At this hour, other corporations maintain a buying dominance of 1.2488 trillion won in the securities market.

Even yesterday, while individuals, foreigners, and institutions all net sold spot assets, buying by other corporations shored up the index's floor.

In particular, large-scale treasury stock purchases by Samsung Electronics and SK Hynix accounted for a significant portion of the net purchases by other corporations, acting as a supply-and-demand cushion.

Kang Jin-hyeok, an analyst at Shinhan Securities, evaluated, "Amid the absence of active buying subjects due to macro pressures, other corporations such as Samsung Electronics and SK Hynix through their treasury stock purchases are serving as a buffer."

However, he noted, "Since treasury stock purchases are not an upward driving factor, a transition to foreign buying driven by the stabilization of macroeconomic anxieties is necessary."

Ultimately, this means that the recovery of foreign supply and demand is crucial for the Kospi to gain additional upward momentum.

Kim Seok-hwan, an analyst at Mirae Asset Securities, said in a phone call with Yonhap News, "While up to the first half of last year it was about rebalancing, in the second half, concerns over industry conditions and macroeconomic variables are intertwined."

He pointed out that foreigners currently appear to be in a "risk-off" mode.

He explained that following last week's Jackson Hole Economic Symposium, major economic events are clustered together, such as the September U.S. Federal Open Market Committee (FOMC) meeting and the Bank of Japan's monetary policy meeting, making it a period where multiple variables act complexly.

Kim said, "Overnight, the U.S. Treasury yield surpassed 4.75%, and the next stop is 5%. This is a zone where the market feels tremendous stress," adding, "It is likely to strengthen the sentiment among foreigners that there is no need to take on massive risks to invest in emerging market assets in an era of high interest rates."

Meanwhile, on this first day of September, foreigners are currently showing a net sell of 541.9 billion won in the securities market.

Institutions also hold a selling dominance of 911.7 billion won, while individuals are net buyers of 197.1 billion won.