Goldman Sachs senior Asia economist Goohoon Kwon warned South Korean retail investors that they are “highly exposed” to US market risks after their holdings in US stocks reached 80 percent.
According to Kwon, with South Koreans' heavy buying during a global equity rally in late 2020, a 10 percent market correction could have placed a third of their holdings in the red.
Kwon made the warning after South Korean individual and institutional investors continued to satiate their appetite for US stocks in January, buying a net $5 billion in such offerings as GameStop Corp. and Tesla Inc. to drive their overseas equities to a record high.
It was the most-ever monthly tally in foreign stocks since 2011 when the Korea Securities Depository began collecting data.
Holdings by South Koreans now include $9.8 billion in Tesla Inc. shares and about $557 million in GameStop Corp.
They turned to US stocks, especially tech stocks like Tesla and Apple Inc., for returns last year.
Regulators in South Korea have been warning retail investors, especially those borrowing recklessly, to be cautious about investing overseas.
South Korea's benchmark Kospi soared 31 percent% in 2020, making its bourse the world’s second-best performer after Nigeria’s.


Insignia Financial Shares Hit 3-Year High Amid Bain and CC Capital Bidding War
SoftBank Eyes Up to $25B OpenAI Investment Amid AI Boom
Bitcoin Hits $100K Milestone Amid Optimism Over Trump Policies
Gordie Howe Bridge to Open July 27 After U.S.-Canada Reach Toll Revenue Agreement
Gold Prices Rise as Markets Await Trump’s Policy Announcements
South Korea Central Bank Set to Raise Interest Rates as Inflation Stays Elevated
Deutsche Bank Sees Global Capital Shifts Reshaping Long-Term U.S. Dollar Outlook
Goldman Sees Foreign Investors Driving India Stock Market Recovery
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets
Oil Prices Surge as U.S.-Iran Conflict Escalates and Strait of Hormuz Risks Grow
Asian Currencies Weaken as Stronger Dollar Weighs, Yen Supported by GPIF Repatriation Hopes
How the UK’s rollback of banking regulations could risk another financial crisis
South Korea to End Short-Selling Ban as Financial Market Uncertainty Persists
US-Iran Strikes Escalate as Strait of Hormuz Crisis Pushes Oil Prices Higher
Ferrari Group to Launch IPO in Amsterdam, Targets Over $1 Billion Valuation
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge
Japanese Yen Holds Steady as Intervention Hopes Grow Ahead of U.S. CPI Data 



