While foreign investors have been buying Korean shares since March, there will be no massive influx of foreign capital in the stocks and bonds market, the Korea Development Institute warned Sunday. "Despite recent decisions by the central banks in many countries to supply liquidity and lower interest rates, such moves cannot be expected to prompt foreign investors to invest in Korean stocks on the massive scale they did in the early and mid-2000s," the state-funded think tank said in a report.

Since support funds in countries including the United States are being used domestically, there is little leeway for such funds to be diverted to overseas markets, it said.

"As long as uncertainty prevails in the global financial market, we cannot expect the massive influx of foreign capital we had before the financial crisis anytime soon," the KDI said. It added the purpose of the recent moves by advanced economies to supply liquidity and cut interest rates aim to stabilize their own financial markets, and cannot therefore count as a factor prompting foreign investors to invest in emerging economies.