Korean Retail Investors Hit 5-Month High in U.S. Stock Net Purchases at $2.975 Billion, Concentrating in Leveraged Semis

SKHY-3.86%
According to Korea Securities Depository, Korean domestic investors recorded net purchases of $2.975 billion in U.S. stocks between July 1-22, the largest amount in five months. The surge was driven by won strength (weakening exchange rate from 1555.8 to 1455.8 won per dollar, a 6.4% decline) and increased volatility in the domestic KOSPI index. However, capital concentrated heavily in semiconductor-related leveraged ETFs rather than diversified holdings. The semiconductor index 3x leveraged ETF SOXL accounted for $2.288 billion, or 77% of total net purchases, followed by SK Hynix American Depositary Receipts at $615.91 million. Analysts note the shift reflects heightened appetite for high-risk bets, partly driven by stricter domestic leverage ETF regulations pushing capital toward less-constrained U.S. markets.
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