Korean retail investors purchased $1.9477 billion in US stocks from January 1 to 17, according to Korea Securities Depository data released on January 21. This represents a more than threefold increase from the previous month's net purchases of $632.95 million. The shift occurred as KOSPI dropped from near-10,000 levels to the 6,500 range, with Samsung Electronics and SK Hynix falling over 30% from their peaks amid semiconductor peak-out concerns and geopolitical risks. KOSPI's market structure remains highly concentrated, with Samsung Electronics and SK Hynix accounting for over 50% of total market capitalization, amplifying volatility across the index.
Korean Investors Net Purchase $1.95 Billion in US Stocks
Korean investors sold $468.93 million and $939.77 million in US stocks in April and May respectively, as KOSPI surged during that period. However, from mid-June onward, investors began repurchasing US equities as domestic semiconductor stocks declined sharply. The January 1-17 net purchase figure of $1.9477 billion (approximately 2.8796 trillion won) marks the highest monthly inflow in recent months, according to Korea Securities Depository's Seibro system.
KOSPI Circuit Breakers Triggered Nine Times This Month
KOSPI experienced nine circuit breaker activations (six sell-side, three buy-side) during 13 trading days this month. KOSDAQ also triggered seven circuit breakers (five sell-side, two buy-side) during the same period. On January 21 at 9:02 AM, KOSPI traded at 6,470.36, down 45.91 points (0.70%) from the previous session.
Won-Dollar Exchange Rate Falls to 1,470 Level
The won-dollar exchange rate peaked at 1,560 won on January 1 before declining to the 1,470 range. Oh Jae-young, researcher at KB Securities, stated that expectations of SK Hynix's approximately $26.5 billion ADR listing proceeds being converted to won over several months noticeably reduced preemptive dollar buying demand from corporations and investors. Min Kyung-won, economist at Woori Bank, noted that importers maintained a strategy of buying dollars even at the 1,500 won level when rates declined, and are likely to purchase more aggressively at current levels. Resident overseas stock investment has also supported the exchange rate floor by generating actual dollar demand.
Individual Investors Buy 161.1 Billion Won in TIGER US S&P500 ETF
Individual investors purchased 161.1 billion won in 'TIGER US S&P500' ETF and 98.6 billion won in 'KODEX US Nasdaq100' from January 10 to 16, according to ETF CHECK data. These ranked first and third respectively in individual net purchases among all ETFs. 'KODEX US S&P500' and 'TIGER US Nasdaq100' followed with 81 billion won and 70.2 billion won in net purchases, ranking fourth and sixth.
KOSPI 12-Month Forward P/E Ratio Hits 6-7x
KOSPI's 12-month forward price-to-earnings ratio fell to 6-7x, the lowest level since the 2008 global financial crisis. The P/E ratio for KOSPI sectors excluding semiconductors also declined to 8.6x, reaching historical low levels. Shin Seung-jin, researcher at Samsung Securities, stated that KOSPI fell approximately 25% from its one-month high, with investor sentiment shaken by multiple news items including Meta's cloud business announcement, Apple's reported inquiry into Chinese semiconductor purchases, China CXMT's IPO success, and the emergence of Kimi AI models. Na Jung-hwan, researcher at NH Investment & Securities, noted that while high-point signals are appearing, conditions that end bull markets—profit momentum slowdown and liquidity tightening—have not yet been confirmed.
FAQ
How much did Korean investors buy in US stocks from January 1 to 17?
Korean investors purchased $1.9477 billion in US stocks from January 1 to 17, according to Korea Securities Depository data released on January 21. This amount is more than three times the previous month's net purchases of $632.95 million.
What caused KOSPI's high volatility this month?
KOSPI experienced nine circuit breaker activations during 13 trading days this month as Samsung Electronics and SK Hynix fell over 30% from their peaks. The two stocks account for over 50% of KOSPI's total market capitalization, causing their declines to amplify volatility across the entire index.
Which US stock ETFs did Korean individual investors buy most?
Individual investors purchased 161.1 billion won in 'TIGER US S&P500' ETF and 98.6 billion won in 'KODEX US Nasdaq100' from January 10 to 16, ranking first and third in individual net purchases among all ETFs, according to ETF CHECK data.
