Why Koreans Sold Samsung and Bought Google — How a Falling Exchange Rate Fuels US Stock Buying

Korean retail investors made a notable move this month: they sold hundreds of billions of won worth of Samsung Electronics and SK Hynix, then used the proceeds to buy Alphabet, Broadcom, and Meta. This wasn't just a stock swap — it was a shift from domestic to US equities. Two forces drove that decision: falling confidence in Korean chipmakers and a falling exchange rate that made US stocks more affordable.

Who Are 'Seohak Gemi' (Western Learning Ants)?

In Korean investing slang, 'gemi' (ants) refers to individual retail investors — everyday people putting in relatively small amounts, as opposed to institutional funds or large foreign players. 'Seohak' means Western learning, a nod to the West where US markets sit. Put together, seohak gemi are Korean retail investors who buy US stocks. The term gained popularity as overseas investing became mainstream over the past several years.

A Quick Primer on Exchange Rates

An exchange rate tells you how much of your currency it takes to buy one unit of another. If the USD/KRW rate is 1,400, you need 1,400 Korean won to buy one US dollar. When that number falls — say from 1,550 to 1,340 — each dollar costs fewer won. That single change ripples through every decision involving dollar-denominated assets, including US stocks.

The Numbers Make It Concrete

At a rate of 1,550 won per dollar, one million won buys roughly 645 dollars. At 1,340 won per dollar, that same million won gets you about 746 dollars — a difference of over 100 dollars, or about 16% more purchasing power, for zero additional spending. For investors buying US stocks regularly, that gap adds up.

Why Sell Samsung and Hynix?

Two pressures converged. First, Chinese memory chipmaker CXMT (Changxin Memory Technologies) has been scaling up fast, increasing competition in the DRAM market — the type of memory chips both Samsung and SK Hynix dominate. Second, broader uncertainty about global semiconductor demand made investors uneasy about near-term earnings. When a sector's outlook clouds over, money tends to leave.

Why Buy Alphabet and Meta?

Both companies posted earnings that beat expectations, driven largely by AI-powered advertising growth. In uncertain markets, investors often gravitate toward companies with predictable, growing revenue. Alphabet and Meta fit that profile — profitable businesses with large AI investments already generating returns.