South Korean Markets Recover as Foreign Investors Return

Foreign investors returned 4.2 billion dollars to Seoul this month as AI demand and reforms lift stocks. The KOSPI has recovered most of its March losses.

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Capital markets in South Korea are successfully attracting foreign investors once again following a turbulent period in March. This renewed interest is driven by several factors, including easing geopolitical tensions involving Iran, a booming global market for artificial intelligence (AI) memory technology, and ongoing corporate governance reforms in Seoul. The benchmark KB RISE KOSPI ETF has managed to recover nearly all the losses from its 19% drop last month, regaining the momentum that made it one of the world's top-performing major stock indices last year.

A financial professional monitors market data including the KOSPI and the won-dollar exchange rate on large screens at a Seoul bank, captured on March 4, 2026. Photo credit: REUTERS/Kim Hong-JI
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