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.


Gold Prices Rise as Markets Await Trump’s Policy Announcements
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict
Tempus AI Stock Soars 18% After Pelosi's Investment Disclosure
BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures
Oil Prices Ease as Markets Weigh U.S.-Iran Peace Deal and Strait of Hormuz Reopening
German Industry Employment Falls to Lowest Level in a Decade
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets
SoftBank Eyes Up to $25B OpenAI Investment Amid AI Boom
S&P 500 Surges Ahead of Trump Inauguration as Markets Rally
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups
Oil Prices Steady as U.S.-Iran Truce Uncertainty and Middle East Tensions Keep Markets on Edge
Investors Brace for Market Moves as Trump Begins Second Term
Do investment tax breaks work? A new study finds the evidence is ‘mixed at best’ 



