South Korean retail investors turn to US stocks, with Tesla emerging as the biggest winner

PANews reported on January 2nd, according to the Financial Times, South Korean retail investors are flocking to the US stock market, betting that US stocks will continue to rise during Trump's second term as President of the United States. At the same time, they are frustrated with the poor performance of the South Korean stock market over many years. According to data from Korea Securities Depository (KSD), by the end of 2024, South Korean investors held a record $112.1 billion in U.S. stocks, an increase of 65% year-on-year. This contrasts sharply with their net sales worth KRW 54 trillion ($3.6 billion) in KOSPI index stocks in the same year. Tesla is most popular among overseas stocks held by South Korean investors; as of last month, individual investors in Korea collectively held $24.5 billion worth of Tesla shares followed by Nvidia ($12.1 billion), Apple ($4.9 billion), and Microsoft ($3.2 billion). Namuh Rhee, head of Korea Corporate Governance Forum said: "This shift highlights their disappointment with local stock markets due to poor shareholder returns." "Unless something dramatic happens this trend may continue."