South Korean retail investors known as 'Seohaggaemi' shifted their focus back to US stocks this month as the domestic KOSPI index experienced a prolonged correction. From July 1 to July 27, Korean investors recorded net purchases of $3.589 billion (approximately 5.2762 trillion won) in US stocks, according to data from the Korea Securities Depository's SEIBro portal. The surge in US stock buying was driven by disappointment over delayed rebounds in Korean equities, prompting investors to redirect capital toward American tech giants and semiconductor-related assets. This month's net purchase volume represents a 5.5-fold increase compared to June's total of $632.96 million, reflecting a significant reversal in investment sentiment from Korean markets back to US markets.
Korean Investors Record $3.589 Billion US Stock Net Purchases in July
According to the Korea Securities Depository's SEIBro portal, Korean investors' net purchases of US stocks from July 1 to July 27 totaled $3.589 billion. As of July 23, net purchases stood at $2.53026 billion, but an additional $1.05973 billion (approximately 1.5581 trillion won) flowed into US stocks in just two days following that date. This brought the monthly total to approximately 5.5 times the net purchase amount recorded in June ($632.96 million).
Direxion Semiconductors Bull 3X ETF Leads July Investment Rankings
The most heavily purchased asset was the Direxion Daily Semiconductors Bull 3X Shares ETF, which tracks the Philadelphia Semiconductor Index at triple leverage. Net purchases of this ETF reached $1.75919 billion during the month. SK Hynix American Depositary Receipts (ADR) also saw continued buying pressure, with net purchases increasing from $613.67 million on July 23 to $812.38 million by July 27.
Following these, Alphabet recorded net purchases of $295.67 million, while the ProShares Ultra QQQ ETF — which provides 2x daily exposure to the Nasdaq-100 Index — attracted $227.39 million in net buying.
Korean Market ETF Experiences Profit-Taking as KOSPI Correction Continues
In contrast, the Direxion Daily MSCI South Korea Bull 3X Shares ETF (KORU), which offers triple-leveraged exposure to Korean stock market gains, experienced profit-taking. Net purchases of KORU decreased from $213.37 million two days prior to $192.04 million, a reduction of $21.33 million (approximately 31.3 billion won).
Korean retail investors had actively purchased KORU through mid-July, pushing net purchases to $237.56 million by July 16. However, they have since reduced their positions. Market analysts attribute this shift to prolonged corrections in the KOSPI and broader Korean equity markets, which have redirected investor sentiment back toward US large-cap technology stocks and semiconductor-related securities.
FAQ
How much did Korean investors buy in US stocks during July?
From July 1 to July 27, Korean investors recorded net purchases of $3.589 billion (approximately 5.2762 trillion won) in US stocks, according to the Korea Securities Depository's SEIBro portal. This represents a 5.5-fold increase compared to June's net purchase amount of $632.96 million.
Which US stocks did Korean retail investors buy the most in July?
The Direxion Daily Semiconductors Bull 3X Shares ETF was the top purchase with $1.75919 billion in net buying. SK Hynix ADR followed with $812.38 million in net purchases, then Alphabet with $295.67 million, and the ProShares Ultra QQQ ETF with $227.39 million.
Why did Korean investors reduce their holdings in Korean market ETFs?
The Direxion Daily MSCI South Korea Bull 3X Shares ETF (KORU) saw net purchases decline from $213.37 million to $192.04 million as the KOSPI experienced a prolonged correction. Market analysts indicate that delayed rebounds in Korean equities prompted investors to shift capital back to US technology and semiconductor stocks.
