In 2025, South Korea emerged as the third largest buyer of U.S. stocks, trailing only Singapore and Norway, according to CNBC calculations of U.S. Treasury data [1]. The country made net purchases of $73.6 billion in U.S. equities during the year, a figure nearly five times higher than its 2024 total [1]. This surge in overseas investment occurred even as South Korea's benchmark Kospi index delivered a remarkable 75% return in 2025 and continued to hit new highs in 2026 [1].
A significant portion of these capital outflows is attributed to individual investors, often referred to as 'seohak ants' in South Korea, who are responsible for 60% to 70% of the country's annual trading volume, according to GAM Investments [1]. Data from the Korea Securities Depository indicates that net purchases of U.S. equities by retail investors exceeded total net overseas purchases, suggesting that investors were selling non-U.S. assets to increase their holdings in U.S. stocks [1].
The Bank of Korea reported that U.S. investments now comprise 63.4% of South Korea's overall external portfolio, a much higher proportion compared to the 25.3% average for advanced economies and 36.8% for emerging economies [1]. Experts such as Daniel Yoo, global strategist at Yuanta Securities Korea, attribute this trend to the perceived attractiveness and potential for higher returns in the U.S. market [1]. Despite the Kospi's strong performance in 2025, the S&P 500 has outperformed the local benchmark in four of the past five years, reinforcing the appeal of U.S. equities among Korean investors [1].
The ongoing preference for U.S. stocks is seen as a response to previously sluggish domestic market conditions, with retail investors seeking better returns abroad [1].
CONCLUSION
South Korean retail investors have significantly increased their exposure to U.S. equities, making the country the third largest buyer of U.S. stocks in 2025. This trend persists despite strong performance in the domestic market, highlighting the enduring appeal of U.S. equities for Korean investors and suggesting continued capital flows into U.S. markets.