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South Korean Retail Investors Pour 10 Trillion Won into US Stocks Over Two Months
Electronic Technology · Semiconductors · yonhap_finance · 2026-08-29
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Frustrated by domestic market stagnation, South Korean retail investors have shifted nearly 10 trillion won into US equities, outpacing local stock purchases.
What Happened
Surge in Overseas Investment: South Korean retail investors have net-purchased approximately 9.7 trillion won (7 billion USD) in US stocks over the past two months. This figure exceeds their net buying in the domestic KOSPI market, highlighting a growing trend of capital flight from local equities to US markets.
Investment Preferences: Retail investors heavily favored the Direxion Daily Semiconductor Bull 3X Shares (SOXL), which accounted for over 40% of their total net purchases. Conversely, they engaged in profit-taking by selling off shares of major tech companies like Nvidia and Palantir.
Drivers of Capital Shift: The shift is largely attributed to the high volatility of the domestic market and the recent downturn in leading semiconductor stocks. Additionally, a decline in the KRW/USD exchange rate has made dollar-denominated assets more attractive to local investors.
Market Outlook: As domestic brokerage account deposits decline, a significant portion of these funds is being reallocated to US markets. Analysts expect this preference for overseas equities to persist as long as the KOSPI remains in a sluggish, sideways trend.
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