Foreign Investors Net Sell 8.7 Trillion Won in July, But Continue Buying Semiconductors and AI Stocks

According to Korea Exchange, foreign investors net sold 8.7 trillion won on the Seoul stock market this month as of July 22, excluding exchange-traded funds. Despite the large-scale selling, foreigners have continued to accumulate stakes in semiconductor and physical AI-related stocks, with LG Electronics, DB Hitech, and Han-Mi Semiconductor among the top 10 net purchase stocks.

Analysts attribute the selective buying to improved valuations following recent market declines. The semiconductor and IT hardware sectors have shifted from overbought to undervalued territories, with the 12-month forward price-to-earnings ratio at historic lows. Physical AI partnership expectations between LG Group and Nvidia also supported buying in LG Electronics and LG Innotek.