Korean Retail Investors Exit US Stocks After $605.5M Withdrawal, Hit by 12.7% Semiconductor Selloff in July

According to the Bank of Korea, Korean retail investors sold $605.5 million worth of US stocks in May, marking two consecutive months of net outflows. During the same period, they aggressively bought domestic shares, particularly Samsung Electronics and SK Hynix, as foreign investors dumped $57.4 billion in the two semiconductor stocks.

The shift backfired quickly. On July 7-8, the KOSPI plunged over 8%, with Samsung and SK Hynix falling 12.7% and 11.4% respectively over two days, leaving retail investors facing significant losses despite continued buying pressure.