Korean Investors Buy 800B Won SK Hynix ADR as Exchange Rate Hits 1470 Won

Korean retail investors known as 'Seohaggaemi' increased purchases of US stocks during this month (settlement basis 1st-16th), sweeping up 800 billion won worth of SK Hynix ADR shares, according to data from Korea Securities Depository's Seibro portal released on the 21st. The accelerated buying occurred as the won-dollar exchange rate fell to the 1470 won range, reducing the burden of purchasing dollar-denominated assets, while the KOSPI underwent adjustments. Domestic stock market volatility expanded, prompting funds to rapidly move toward US semiconductor stocks and exchange-traded funds (ETFs).

Exchange Rate Falls to 1470 Won Range

The won-dollar exchange rate declined to the 1470 won range during the period covered by the data. This exchange rate level reduced the cost burden for Korean investors purchasing dollar-denominated assets in US markets.

Korean Investors Shift Funds to US Semiconductor Stocks and ETFs

Korean retail investors redirected funds toward US semiconductor stocks and ETFs as the KOSPI experienced adjustments. The Korea Securities Depository's Seibro portal recorded the investment flow data for this month on a settlement basis covering the 1st through 16th. SK Hynix ADR emerged as a major recipient of these purchases, with Korean investors acquiring 800 billion won worth of the stock during this period.

FAQ

What did Korean retail investors purchase in US markets this month?

Korean retail investors purchased 800 billion won worth of SK Hynix ADR shares during this month (settlement basis 1st-16th), according to Korea Securities Depository's Seibro portal data released on the 21st. Funds also moved toward US semiconductor stocks and ETFs.

Why did Korean investors increase US stock purchases during this period?

The won-dollar exchange rate fell to the 1470 won range, reducing the burden of buying dollar assets. Simultaneously, the KOSPI underwent adjustments and domestic stock market volatility expanded, prompting the shift toward US markets.