SEOUL– South Korean retail investors in overseas markets are increasingly turning away from U.S. big tech stocks in favor of shares tied to virtual assets, particularly those connected to stablecoins, according to a report released Monday.
The Korean Center for International Finance (KCIF) found that the share of virtual asset-related stocks among the top 50 net-purchased stocks by South Korean individual investors rose from 8.5 percent in January to 36.5 percent in June, before easing slightly to 31.4 percent in July.
Meanwhile, net purchases of the top seven U.S. big tech companies fell sharply—from a monthly average of $1.68 billion between January and April—to $440 million in May, $670 million in June, and just $260 million in July, Yonhap News Agency reported.
“Investments in virtual assets, especially in stablecoin-related stocks, have grown following the passage of the U.S. GENIUS Act,” the KCIF report stated. The legislation, signed into law last month by U.S. President Donald Trump, establishes regulatory guidelines for the stablecoin industry and opens the door for private companies to issue them.
Overall, South Korean retail investors became net sellers of overseas stocks in May after several months of net buying, continuing to sell through June. They returned to net buying in July, with purchases totaling $499 million, though this was well below the monthly average of $3.8 billion seen in the first four months of the year.
“Since June, the domestic stock market has outperformed overseas markets, and the Korean won has strengthened, leading individual investors to pull back from foreign investments,” the KCIF noted.
The report added that, with ongoing concerns about the potential impact of U.S. tariffs on the real economy, South Korean retail investors are unlikely to resume aggressive overseas stock buying in the near term. (Source: IANS)
