South Korean retail investors are actively returning to US equities, driven by burgeoning enthusiasm for AI-powered technology rallies that are overshadowing government initiatives to boost the domestic market.
Recent data from the Korea Securities Depository, released Sunday, reveals that Korean investors’ holdings in US stocks reached $200.14 billion (approximately 300.3 trillion won) by August 14.
This substantial rebound signifies a significant reversal from earlier this year. Government initiatives designed to invigorate the local stock market had temporarily curbed overseas investment, leading to a decline in US stock holdings by Korean investors from roughly $167.5 billion at the year’s beginning to $146.6 billion by the end of March. These measures specifically aimed to encourage a “return to Korean stocks.”
Key among these policy initiatives was the March launch of reshoring investment accounts. This program offered temporary tax incentives, designed to motivate investors to sell their overseas shares and reinvest the proceeds into Korean equities.
Nevertheless, investor appetite for US stocks has dramatically rebounded since last month. This resurgence is primarily fueled by renewed optimism surrounding advancements in AI and semiconductor technology shares.
Reflecting this trend, both the S&P 500 and Nasdaq Composite recently ascended to record highs, driven by robust performance in the technology sector.
Korean investors have notably concentrated their purchasing activity on AI and semiconductor companies. Over the past month, Intel emerged as the most-bought US stock, recording net purchases of $641 million. This surge was significantly boosted by expectations of a reported chip production partnership with Apple.
Additional popular investment choices encompassed ETFs linked to Samsung Electronics and SK hynix, alongside shares of Micron Technology and Alphabet.
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