Why Korean Retail Investors Are Fleeing to U.S. Stocks Again

Between July 1 and 23, Korean individual investors net-bought approximately $2.53 billion worth of U.S. stocks — more than 4 times the pace of the previous month. Over the same period, domestic brokerage deposits fell below 100 trillion won. Money is clearly moving from Korean to U.S. markets.

Who are the 'Seohak Gaemi'?

"Seohak Gaemi" — literally 'Western-study ants' — is the term for Korean retail investors who invest in overseas (especially U.S.) stocks. The nickname exploded during the 2020–2021 U.S. stock boom. Since then, a recurring pattern has emerged: whenever Korean markets get shaky, money flows back to the U.S.

Why the rush to U.S. stocks right now?

Three main reasons. First, Korean markets are volatile — the KOSPI has been swinging hard, making investors nervous. Second, U.S. markets feel relatively stable. The Nasdaq and S&P 500 have a long track record of long-term growth, anchored by powerhouse companies like Nvidia and Apple. Third, AI and semiconductor excitement. The global AI investment story plays out most directly in U.S. stocks.

What are they actually buying?

Mainly leveraged semiconductor ETFs and Big Tech ADRs. ETFs bundle many stocks into one tradable product, and leveraged versions aim for 2–3x the index's daily move. ADRs let investors buy shares of non-U.S. companies (like Samsung) in dollars on U.S. exchanges. In short, Korean retail investors are concentrating on maximizing semiconductor-related returns.

Is this a good trend?

Not necessarily. On July 24, U.S. semiconductor stocks also plunged sharply. The 'Korean market is scary, so let's go to the U.S.' mindset can be short-term herd behavior. When money crowds in, prices may already be elevated — and currency risk adds another layer. Overseas investing is great for diversification, but moving everything simply because you're fed up with the local market can backfire.