South Korean Investors Shift Focus to U.S. Stocks Amid Local Market Discontent

According to PANews, South Korean retail investors are increasingly turning to the U.S. stock market, driven by optimism about potential gains during a second term for former President Donald Trump and dissatisfaction with the prolonged underperformance of the domestic market. Data from the Korea Securities Depository reveals that by the end of 2024, South Korean investors held a record $112.1 billion in U.S. stocks, marking a 65% increase from the previous year. This contrasts sharply with their net sale of 5.4 trillion won (approximately $3.6 billion) in South Korean KOSPI index stocks during the same period. Tesla has emerged as the most favored foreign stock among South Korean investors, with individual investors holding a total of $24.5 billion in Tesla shares as of last month. Other popular U.S. stocks include Nvidia, with $12.1 billion, Apple at $4.9 billion, and Microsoft at $3.2 billion. Namuh Rhee, head of the Korea Corporate Governance Forum, commented on this trend, highlighting the investors' disappointment with local stock market returns. He noted, "This shift underscores their frustration with poor shareholder returns in the domestic market. Unless something dramatic occurs, this trend is likely to continue."