South Korean retail investors have reached a significant milestone by holding over $100 billion in U.S. stocks for the first time. According to the Korea Securities Depository, as of November 7, they possessed U.S. stocks valued at $101.4 billion, marking a 64% increase from the previous year. This surge is driven by the pursuit of higher returns, as the domestic Korean Composite Stock Price Index (Kospi) has declined, making it one of the worst-performing indices globally.
Despite efforts by authorities to rejuvenate the South Korean stock market by strengthening corporate practices, local investors have net sold Kospi stocks worth 4.4 trillion won (approximately $3.2 billion) in 2024. They are particularly drawn to more volatile sectors like cryptocurrency and technology stocks.
Among U.S. stocks, Tesla (TSLA, Financial) is the most popular choice among South Korean investors, with holdings totaling $16.7 billion. They also hold significant stakes in Nvidia (NVDA) with $13.8 billion, Apple (AAPL) with $4.6 billion, and Microsoft (MSFT) with $3.6 billion. Additionally, there is strong demand for leveraged exchange-traded funds (ETFs) that track U.S. tech stocks, including those aiming to triple the daily returns of the Nasdaq 100 Index and U.S. chip stocks.
