South Korea's main equity benchmark gave up gains after hitting a milestone, as foreign investors kept cutting their bets in what had been the world's hottest stock market. The selling pressure reflects a broader shift in sentiment toward Korean equities, which had attracted heavy inflows amid optimism about export-driven growth and tech valuations.

Global funds have been steadily reducing exposure, draining liquidity that helped push the index to record territory. The unwinding of positions puts downward pressure on prices and tests whether local institutional buyers can absorb selling without the market losing its momentum.

For foreign portfolio managers, the pullback signals a reassessment of risk after South Korean stocks ran up sharply. How quickly capital exits accelerate will determine whether the market stabilizes or faces a deeper correction.