Individual investors in South Korea net purchased $87.63 million in US stocks over nine trading days in July, according to Korea Securities Depository data released on July 14. The shift follows extreme volatility in the domestic KOSPI market, which triggered 35 sidecar mechanisms and seven circuit breakers this year. Domestic investor deposits plunged from 136 trillion won on June 24 to 109 trillion won by July 13, marking a nearly 30 trillion won decline as market participants withdrew funds from the volatile domestic exchange.
Individual Investors Target US Semiconductor ETFs and Chip Stocks
The top US stock purchased by Korean investors in July was the Direxion Daily Semiconductors Bull 3X ETF (SOXL), which tracks three times the daily performance of the Philadelphia Semiconductor Index. Applied Materials, a global semiconductor equipment company, ranked second in net purchases, followed by Microsoft. The semiconductor focus reflects a strategic shift as investors sought exposure to the sector through US-listed assets rather than domestic chip stocks.
Korean investors recorded net purchases of US stocks for two consecutive months, reversing the selling trend observed in April and May when KOSPI outperformed. In May, KOSPI surged 28% while the Nasdaq gained 8%, leading domestic investors to reduce US stock holdings.
Samsung Electronics and SK Hynix Net Purchases Decline by Half
Individual investors reduced their net purchases of Samsung Electronics and SK Hynix in the domestic market despite continuing to buy both stocks. Net purchases of Samsung Electronics fell from 5.06 trillion won in the first week (June 29–July 3) to 2.18 trillion won in the second week (July 6–10). SK Hynix net purchases dropped from 7.79 trillion won to 3.72 trillion won over the same period.
The decline in domestic semiconductor stock purchases occurred as memory chip peak-out concerns affected global markets, with domestic stocks experiencing sharper price swings than their international counterparts.
Domestic Market Deposits Drop 30 Trillion Won in Three Weeks
Investor deposits in the domestic stock market fell by nearly 30 trillion won between June 24 and July 13, according to Korea Financial Investment Association data. The deposit balance peaked at 136 trillion won on June 24 before declining to 109 trillion won by July 13.
Market volatility intensified after the introduction of single-stock leveraged products in late May, which contributed to 17 of the 35 sidecar triggers recorded this year. On July 14, KOSPI closed at 6856.83, up 49.90 points (0.73%), while the KOSDAQ index fell 15.38 points (1.92%) to 783.98.
FAQ
How much did Korean investors net purchase in US stocks in July?
Korean individual investors net purchased $87.63 million in US stocks over nine trading days in July, according to Korea Securities Depository data released on July 14.
What were the top US stocks purchased by Korean investors in July?
The top US stock purchased was the Direxion Daily Semiconductors Bull 3X ETF (SOXL), followed by Applied Materials and Microsoft, according to the same data.
How much did domestic investor deposits decline in the Korean stock market?
Domestic investor deposits fell from 136 trillion won on June 24 to 109 trillion won by July 13, a decline of nearly 30 trillion won in less than a month, according to Korea Financial Investment Association data.
