Korean retail investors bought about $4.5 billion of U.S. stocks in July, according to the Korea Securities Depository, with roughly $840 million flowing into SK Hynix’s U.S.-listed ADR. That ADR is trading about 10% above the company’s shares in Korea, while financing balances on the Korean stock market fell from about 37 trillion won at the end of June to about 27 trillion won in early August. Acadian Asset Management executive vice president Owen Lamont said the price gap could be a sign of excessive speculation, even a symptom of a bubble.
The shift into U.S. markets has not reduced risk-taking. AI, semiconductors and leveraged products remain the main bets, and four of the 10 most-purchased U.S. stocks in July were leveraged products, led by Direxion Daily Semiconductor Bull 3X Shares (SOXL). Analysts said Korean investors may simply be moving high-risk AI trades from the domestic market to the U.S. rather than exiting risk assets altogether. Industry participants also said Korea’s capital base is not large enough to move the broader U.S. market, but concentrated trading could still amplify swings in volatile names such as AI chips, quantum computing and leveraged ETFs.
SK Hynix’s U.S.-listed ADR is still trading at about a 10% premium to the company’s shares in Korea, even as Korean retail investors sent about $4.5 billion into U.S. stocks in July.
Data from the Korea Securities Depository show that Korean investors were net buyers of roughly $4.5 billion in U.S. equities last month. About $840 million of that went into SK Hynix’s ADR, making it one of the most-purchased U.S. securities by Korean investors.
They could have bought SK Hynix directly in the Korean market, but instead chose the ADR, leaving the two listings priced differently. The U.S.-listed stock has also shown higher volatility.
Acadian Asset Management senior vice president Owen Lamont said the unusual price gap may reflect excessive speculation and could even be a “symptom of a bubble.”
The move into U.S. stocks has not lowered risk appetite. AI, semiconductors and leveraged products remain the core targets, and four of the 10 most-bought U.S. stocks by Korean investors in July were leveraged products. Direxion Daily Semiconductor Bull 3X Shares (SOXL) was the most popular.
At the same time, financing balances in the Korean stock market fell from about 37 trillion won at the end of June to about 27 trillion won in early August.
Analysts said Korean investors may simply be shifting high-risk AI trades from the local market to the U.S. rather than leaving risk assets behind. Industry participants also said Korea’s money is too small to change the broad direction of the U.S. market, though concentrated trading could still increase volatility in AI chips, quantum computing and leveraged ETFs.
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