Foreign investors poured the largest amount of money into Korean shares among emerging markets in Asia over the past month as easing concerns over Europe’s debt crisis prompted them to take greater risks, a report showed Sunday.

Foreigners purchased a net $3.11 billion worth of Korean stocks between July 10 and Thursday, the largest foreign net buying among six emerging markets in Asia, according to the report by Woori Investment & Securities Co.

Korea was followed by India with $1.15 billion, Indonesia with $445 million, the Philippines with $337 million, Thailand with $116 million and Taiwan with $57 million.

Foreign investors had started to dump Korean shares since April, selling a net $2.34 billion worth of stocks in May alone amid the escalating European fiscal crisis.

However, they have been snapping up local equities since July 27, when the head of the European Central Bank said it would do anything to salvage the debt-mired region.

Analysts attributed foreign investors’ recent buying spree to their increased risk-taking amid signs that Europe’s debt-stricken countries will not lapse in to a deeper crisis.

“With European risks diminishing, foreign investors seem to be attracted by the undervalued South Korean bourse,” a market watcher said on the condition of anonymity.

Foreign investors’ strong purchase of Korean stocks is also expected to help the country’s main stock index gather further ground down the road.

After breaking the psychologically important level of 1,900 on Wednesday, the benchmark Korea Composite Stock Price Index rose as high as 1,9845.40 on Friday.

Since the local stock market is excessively undervalued compared to the debt market, the KOSPI could reach the 2,100 mark by the end of the year, should macroeconomic indicators turn for the better sooner or later, an analyst said. (Yonhap News)