Are South Korean Retail Investors Moving Away from US Big Tech to Crypto Stocks?
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Synopsis
Recent trends show South Korean retail investors are shifting their focus from U.S. big tech stocks to virtual asset-related shares, notably stablecoins. Discover why this shift is occurring and what it means for the investment landscape.
Key Takeaways
- South Korean retail investors are increasingly favoring virtual asset shares.
- Investments in stablecoins are gaining traction due to regulatory changes.
- Net purchases of U.S. big tech stocks have significantly decreased.
- The domestic stock market has outperformed international markets.
- Concerns over U.S. tariffs are affecting overseas investment strategies.
Seoul, Aug 11 (NationPress) South Korean individual investors in foreign stocks are increasingly focusing on virtual asset-related shares, particularly those associated with stablecoins, rather than U.S. big tech stocks, according to a report released on Monday.
The share of virtual asset-related stocks among the top 50 net-bought stocks by local individual investors surged from 8.5 percent in January to 36.5 percent in June, before experiencing a slight decrease to 31.4 percent in July, as reported by the Korean Center for International Finance (KCIF).
In contrast, net purchases of the top seven U.S. big tech companies plummeted from a monthly average of $1.68 billion between January and April to $440 million in May, $670 million in June, and further down to $260 million in July, as noted by Yonhap news agency.
According to the report, "Investments in virtual assets, especially in shares related to stablecoins, have gained momentum following the enactment of the U.S. GENIUS Act." Last month, U.S. President Donald Trump signed this act, which aims to establish regulatory frameworks for the stablecoin sector and facilitates private firms in issuing them.
Overall, South Korean retail investors became net sellers of foreign stocks in May after several months of net buying, continuing this trend through June.
Although they returned to net buying in July with purchases totaling $499 million, the pace remained tepid compared to the monthly average of $3.8 billion during the initial four months of this year.
The KCIF highlighted that "since June, the domestic stock market has outperformed international markets, and with the local currency appreciating, individual investors are pulling back from foreign investments."
Given the persistent concerns regarding the implications of the U.S. tariff strategy on the real economy, retail investors are expected to remain cautious about investing in overseas stocks for the foreseeable future.
Point of View
Our editorial team emphasizes the importance of adapting to market shifts. The growing interest in virtual assets among South Korean investors suggests a strategic pivot influenced by regulatory changes and domestic market performance, warranting close attention from both investors and analysts alike.
NationPress
20/08/2025
Frequently Asked Questions
What is driving South Korean investors to crypto-related stocks?
The shift is primarily influenced by the recent enactment of the U.S. GENIUS Act, which establishes regulatory frameworks for the stablecoin sector, coupled with the underperformance of U.S. big tech stocks.
How much have net purchases of U.S. big tech stocks declined?
Net purchases have fallen from an average of $1.68 billion monthly to just $260 million in July.
What percentage of stocks are virtual asset-related among South Korean investors?
The percentage rose from 8.5% in January to 36.5% in June before slightly declining to 31.4% in July.
What are stablecoins?
Stablecoins are a type of cryptocurrency designed to maintain a stable value relative to a currency or a basket of goods.
Are South Korean retail investors likely to invest in overseas stocks soon?
Given ongoing concerns about U.S. tariff policies, it is unlikely that retail investors will significantly invest in overseas stocks in the near future.
