finance
South Korean Investors Led Foreign Purchases of U.S. Stocks in 2025, Data Shows
South Korean investors emerged as the top foreign purchasers of U.S. stocks from January to November 2025, acquiring nearly five times more than in 2024. This trend persisted despite strong performance by the domestic Kospi index. Government tax breaks aim to redirect investments domestically, but outflows continued into early 2026.
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U.S. stocks among foreign buyers from January to November 2025, according to data reported by CNBC. U.S. stocks in 2025 than in 2024, even as South Korea's benchmark Kospi stock index delivered 75% returns in 2024 and hit new highs in 2025.
U.S. 8% for emerging economies, as detailed in a Bank of Korea report released last week. South Korea has about 15 million retail investors, who account for 60% to 70% of annual trading volume, according to GAM Investments.
U.S. equities by South Korean retail investors exceeded total net overseas purchases, based on data from the Korea Securities Depository. The South Korean government announced tax breaks for individual investors who sell foreign holdings, exempting taxes on capital gains from overseas stocks if the proceeds are invested in domestic stocks for one year, subject to certain conditions.
U.S. stocks at almost $10 billion, excluding the Cayman Islands and Ireland. The S&P 500 outperformed the Kospi in four of the past five years, though the Kospi outperformed the S&P 500 and Nasdaq in 2025.
South Korean individual investors' investment in foreign assets in 2025 was more than tripled, or almost four times higher, compared to 2020, according to Kang Min Joo. U.S. market attractiveness. U.S. market investment.
U.S. market, which provided higher returns. Florian Weidinger, CEO at Santa Lucia Asset Management, told CNBC that while recent efforts in South Korea attempt to create a stronger domestic equity culture that encourages wealth creation away from the property market, locals don't seem convinced.
