Korean retail investors trading U.S. stocks sold more than 1 trillion won of U.S. shares in the first week of June. It was the third straight month of net selling after April and May.
On the 7th, according to the Korea Securities Depository (KSD) securities information portal, Seibro, Korean retail investors trading U.S. stocks recorded a net sale of $793.67 million (about 1.2373 trillion won) in the first week of June (1–5). Specifically, they bought $882 million but sold $802.63 million.
The net selling trend by Korean retail investors trading U.S. stocks has continued for three months. Korean retail investors trading U.S. stocks were net sellers in May ($939.77 million) and April ($468.92 million). Three consecutive months of net selling by Korean retail investors trading U.S. stocks is the first time in about three years since April–July 2023.
On a weekly basis, selling has been the strongest since April. Korean retail investors trading U.S. stocks recorded a net purchase of $20.88 million in the first week of May (1–7) and a net sale of $907.33 million in the first week of April (1–7).
It is interpreted that the investment appeal of the U.S. stock market has waned compared with the domestic market, which has outperformed. While domestic semiconductor stocks Samsung Electronics and SK hynix delivered returns of 198% and 258%, respectively, Nvidia (20%) and Tesla (-8%) posted those returns.
June's net selling also differs somewhat from April–May in that the deadline expired last month for receiving a 100% capital gains tax deduction on overseas stock sales through the return-to-domestic-market account (RIA). Because the capital gains tax deduction fell from 100% through last month to 80% through the end of July.
However, the amount held (valuation) by Korean retail investors trading U.S. stocks stood at $201 billion, maintaining above $200 billion.
The stock most heavily bought by Korean retail investors trading U.S. stocks was Micron ($205.63 million). Following a net purchase of $585.43 million last month, it was also the most bought this month. Broadcom ($175.58 million) and Arm Holdings ($163.70 million) were also among the top net purchases.
In contrast, Intel and Alphabet, which ranked second and third in net purchases in May, did not make the top 20.