Foreign investment sold nearly 100 billion US dollars in half a year, causing continuous withdrawal of funds from the South Korean stock market As I mentioned earlier, the recent decline in the South Korean stock market is only superficial in terms of semiconductor financial reports. The biggest challenge is the simultaneous emergence of financing, leveraged ETFs, and foreign capital withdrawals. As of early July, the cumulative net sales of Korean stocks by foreign investors in 2026 have approached $100 billion. The most severe outflow of foreign investment in the past few years was around 20 billion to 25 billion US dollars, and the outflow scale in the past six months has far exceeded the annual level of previous years. From January to April, the cumulative net outflow has approached $40 billion. After a brief slowdown in May, it accelerated again in June and directly approached $100 billion by July. This indicates that when the South Korean stock market rose earlier, overseas funds not only did not increase their holdings along the way, but also continued to sell. The continued upward trend of the South Korean stock market mainly relies on domestic funds, financing accounts, and leveraged ETFs to take away the chips left by foreign investors leaving the market. Foreign capital sold nearly 100 billion US dollars, and KOSPI continued to reach new highs, indicating that local funds had a very strong buying force at that time. But the stability of this upward trend is poor because foreign capital takes away cash, and a considerable portion of the funds added by local investors come from financing and leverage. When the market rises, the margin in the financing account is sufficient, and leveraged ETFs passively increase their exposure every day. Local funds can continue to push the market higher. After the price starts to fall, financing accounts need to replenish margin, leveraged ETFs need to reduce positions daily, and retail investors may also redeem due to losses. The funds that catch foreign selling orders ahead will become new selling orders when they fall. This is also the reason why the South Korean stock market has been experiencing increasing volatility recently. Foreign investment has been continuously withdrawing since the beginning of the year, and the remaining positions in the market are increasingly relying on local financing and leverage to maintain. As long as Samsung Electronics, SK Hynix, or the semiconductor sector experiences a continuous pullback, the entire capital structure will begin to shrink. A good financial report can only temporarily stabilize emotions, and it is difficult to fill the nearly $100 billion foreign investment gap. The healthiest outcome is for the market to actively reduce positions and leverage, and wait for the gradual end of foreign selling pressure. If we continue to rely on financing and leverage to push the index up, it will only make the next decline more terrifying. @Gate Crypto、 US stocks, Hong Kong stocks, South Korean stocks, gold CFD、 Predicting one-stop trading in the market