South Korea's equity market is on track to see its largest weekly foreign inflow since early April, signaling a cautious return of global investors after a historic sell-off in the $4.1 trillion market.

Data shows that overseas investors purchased a net $2 billion in South Korean stocks this week through Thursday. Foreign buying of KOSPI index components is expected to continue on Friday, exceeding $1 billion in net purchases.

Over the previous months, South Korea's stock market experienced nearly continuous capital outflows, with total withdrawals exceeding $100 billion this year. The return of foreign capital has driven the benchmark KOSPI index to rise every trading day this week, accumulating a gain of over 10%.

As leveraged positions in the crowded AI sector trade are unwound, signs of easing in the market's extreme volatility phase have emerged.