Korean Retail Investors Dump Local Shares, Buy US Stocks for $4.5 B
· World · LiveMint, Economic Times, Times of India
Korean retail investors sold domestic shares last week despite the KOSPI rally and purchased a net $4.5 B worth of US stocks in July, focusing on technology, semiconductors and leveraged products. About $840 M of the outflow went to SK Hynix US‑listed depositary receipts, even though the shares can be bought cheaper in Korea. The KOSPI surged roughly 120% in the first half of 2026, with Samsung up 170% and SK Hynix more than 300%. Analysts say the shift reflects a search for deeper liquidity and a hedge against a weaker won, yet the playbook—tech and semiconductors—remains unchanged. The report does not indicate whether this trend could trigger a Korea‑style crash on Wall Street.
Why it matters
Increased outflows from the KOSPI may reduce liquidity for Korean corporates, while larger purchases of US technology stocks could lift demand for those shares abroad, affecting valuation levels for global investors.
Read the original report — LiveMint
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