The rise in the number of foreign investors in South Korea's stock market slowed to a 10-year low last year, the financial watchdog said Sunday.

According to the Financial Supervisory Service, the number of foreign investors in the local market came to 37,611 in 2013, up 5.4 percent from the previous year.

Such a rise marks a continuation of recent increases, but the lowest on-year gain since 2003.

Of all foreign investors here, 26.3 percent, or 9,904, were individual investors with foreign businesses and institutions making up the rest.

Despite a rise in the number of foreign investors, the amount of foreign investment dropped significantly, apparently reflecting the waning popularity of the local market to foreign investors.

Foreign investors purchased some 4.72 trillion won ($4.37 billion) worth of listed shares in South Korea last year, down 73.2 percent from 17.63 trillion won in 2012, according to the FSS.

As of the end of last year, American investors and firms owned some 171.35 trillion won worth of listed shares here, accounting for 39.6 percent of the total owned by foreign investors.

British firms and investors followed with 42.46 trillion won worth of shares, making up 9.8 percent of the total owned by foreign investors. (Yonhap News)