Foreign investors purchased the highest value of South Korean stocks in 17 months in July, signaling renewed confidence in the market.

According to the Korea Exchange on Sunday, offshore investors bought a net six-point-28 trillion won worth of local stocks last month.

This marks the highest monthly figure since February of last year, when foreign investors purchased a net seven-point-85 trillion won in South Korean equities.

The July total also more than doubled compared to the previous month.

The surge in foreign buying is attributed to the new government's stock market stimulus measures, expectations for a resolution in tariff negotiations between South Korea and the United States, and optimism surrounding Samsung Electronics' earnings following its major chip supply deal with Tesla.

Driven by strong foreign inflows, the benchmark Korea Composite Stock Price Index rose five-point-seven percent in July.