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Korean Investors Net Buy $1.95B in US Stocks, But Holdings Value Drops Sharply

Korean retail investors have again showed enthusiasm for US stocks this July, buying a net of about $1.948 billion (roughly 2.9 trillion won) from July 1st to July 20th. This is the second month of net buying following $633 million in June, according to Korea Securities Depository (KSD) and industry data. In spite of this heavy buying, the total value of US stocks held by Korean investors decreased significantly to $177.3 billion as of July 17th from $194.8 billion in late June and $204.2 billion at the end of May.

Why Holdings Value Decreased Even with Net Buying

Custody value decreased because of sharp corrections in the US technology and semiconductor sectors-the main holdings of Korean investors in the US. Major stocks like Tesla, NVIDIA, Google, Apple, Micron, and TSMC ADR declined from their peak levels due to concerns about semiconductor cycle tops and general market volatility. For example:

Tesla: From a July high of $425.30 to $369.57.

NVIDIA: From a July high of $212.50 to $203.28.

Micron: Fell sharply from about $1,200 to roughly $860.

These price declines outpaced the new capital, thus reducing the overall portfolio value.

Background: RIA Tax Expiration

The RIA tax benefit expiration in late May motivated Korean investors to turn back to US equities. As the RIA tax benefit expired at the end of May-after it was launched in March to boost capital repatriation to South Korea by exempting capital gains-many investors began investing in US equities.

US-Iran Geopolitical Risk and Semiconductor Cycle Top Concerns

The slide in prices was amplified by the recent rise in tensions between the US and Iran and worries about the semiconductor cycle topping out. This created a feedback loop that not only impacted South Korean domestic stocks but also the major US tech/semiconductor stocks favored by South Korean investors.

Implication for Korean Investors

This development reflects a typical cross-border investing challenge: making the timing right when inflows occur into concentrated growth sectors. Retail investors in South Korea continue to have a heavy weight in the major growth tech sectors in the US and are highly exposed to sector-specific Corrections.

Despite the ongoing buying frenzy showing investors confidence in US company’s long-term viability, the decrease in total holdings is a sobering reminder of the inherent risks, particularly in such high-growth sectors as semiconductors and electric vehicles.

Global Market Context

Korean investors’ trends echo a global pattern observed in the crypto and traditional markets of the second quarter of 2026: the deliberate deployment of cautious capital as uncertain geopolitical circumstances persist. As US-Iran conflicts and semiconductor market developments continue to play out, investment strategy should focus more heavily on the value of diversified holdings and the implementation of systematic risk management techniques.

For those who use Gate, monitoring these global capital movements will offer unique insights into retail investor attitudes in Asia’s largest markets, as well as potential knock-on effects on US tech/semiconductor shares.

While participating in the #SummerCreationCamp (which has a 50,000 USDT prize pool running until July 27th), we believe this analysis of global investment trends and market dynamics would provide value.

What is your opinion about the investment approach of Korean investors towards US stocks under current volatility?

‍#KoreanInvestors
@Gate_Square@Gate 广场