Global investors are returning to South Korean equities after a sharp leverage-driven selloff, with renewed buying in semiconductor stocks such as Samsung Electronics and SK Hynix. While volatility persists, easing deleveraging, lower short interest and resilient AI-driven chip demand are improving sentiment toward the country's technology-heavy stock market.

Big investors are shifting to buy South Korean stocks, signaling renewed faith in heavyweight chipmakers despite recent market volatility.

Foreign investors pulled $13 billion from South Korean stocks in July as KOSPI crashed 33%, but continued selectively buying Samsung and SK Hynix