Citigroup has indicated that the trend of foreign-led capital outflows from the South Korean stock market is likely to persist, even as the outlook for the country's current account surplus shows improvement.

In a report, Citigroup economist Jin-Wook Kim noted that foreign equity outflows accelerated to $30.5 billion in June, up from $27.9 billion the previous month, driven by portfolio rebalancing and profit-taking activities.

By the end of June, the shareholding proportion of foreign investors in the South Korean stock market had risen to 38.9%, an increase from 32.9% recorded in December of the previous year.

Bolstered by robust growth in semiconductor exports, the bank has revised its forecast for the 2026 current account surplus upward. It now anticipates the surplus will reach 16.4% of GDP, surpassing the previous projection of 13.2%.

The forecast suggests semiconductor export growth could reach approximately 170% by 2026, a significant acceleration from the 22% growth rate seen a year earlier.