S.Korean investors' US stock holdings surpass $100 bn

The US stock holdings of South Korean individual investors surpassed $100 billion for the first time, driven by a sustained rally in the US markets and the re-election of former President Donald Trump. 

According to data from the Korea Securities Depository, the value of US stocks held by Korean investors stood at $101.36 billion (141.7 trillion won) as of November 7.

This amount represents approximately 37.4% of Samsung Electronics Co. ’s market capitalization of 378.6 trillion won and is nearly equivalent to the 145.1 trillion won valuation of SK Hynix Inc., South Korea's second-largest company by market cap.

The pandemic marked a turning point for South Korean investors, who began flocking to US equities in significant numbers.

Robust growth in US markets—fueled by advancements in artificial intelligence and other cutting-edge technologies—has consistently outpaced Korea’s stagnant stock market.

The US stock holdings of the South Korean investors surged from just $8.4 billion in late 2019 to $44.2 billion by the end of 2022, soaring to $68 billion last year.

Market analysts predict the trend may deepen because of President-elect Trump. His America First policies could reinforce the US’s global dominance but may lead to heightened trade barriers, posing risks for Korean exporters heavily reliant on international markets.

Write to Han-Shin Park at phs@hankyung.com