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Retail investors' US stock holdings hit record highs despite weak won
An advertisement for U.S. stock trading is displayed at a securities firm building in Seoul, Dec. 25, 2025. Yonhap
By Jun Ji-hye
Korean retail investors are continuing to pour money into U.S. equities, pushing holdings to record levels even as the won remains weak against the dollar, data from the Korea Securities Depository showed Tuesday.
As of last Friday, domestic investors held $171.8 billion worth of U.S. stocks, equivalent to about 253 trillion won, up from $163.6 billion at the end of 2025.
Holdings of U.S. equities stood at about $44.2 billion at the end of 2022 and climbed sharply to $112.1 billion by the end of 2024 and further to $163.6 billion by the end of 2025.
Tesla tops the list of U.S. stocks held by domestic investors, with holdings valued at $27.5 billion, followed by Nvidia at $17.8 billion, Alphabet at $7.2 billion, Palantir at $6.3 billion and Apple at $4.2 billion.
As the surge in overseas stock investments by retail investors has been cited as one of the major factors contributing to the elevated exchange rate, financial authorities are rolling out a range of measures to promote domestic investment and help stabilize the foreign exchange market.
On Dec. 24, the Ministry of Economy and Finance unveiled tax incentives that include a one-year exemption from the 20 percent capital gains tax for individual investors who sell overseas stocks and reinvest the proceeds in domestic equities through designated reshoring investment accounts (RIAs).
The RIA scheme is expected to launch as early as next month, as the ruling Democratic Party of Korea is preparing to introduce legislation amending the Act on Restriction of Special Cases Concerning Taxation to implement the program. Party insiders say momentum is building to fast-track the process amid heightened volatility in the foreign exchange market.
Analysts say efforts to redirect overseas investment back into the local market could support foreign exchange stability, as capital inflows would increase demand for the won while reducing dollar holdings.
“While it is difficult to forecast the scale of funds that could return under the RIA policy, the initiative is likely to support exchange-rate stability and the broader capital market,” Yeom Dong-chan, an analyst at Korea Investment & Securities, said.
Authorities are also considering easing domestic exchange-traded fund regulations to bring them closer to international standards.
ETFs track the performance of assets such as equity indices, bonds or currencies while being traded like stocks.
Under the proposal, the leverage limit would be raised from two times to three times and rules on portfolio composition would be relaxed. If approved, the changes would allow the launch of leveraged ETFs that track the price movements of individual stocks such as Samsung Electronics and SK hynix at three times the current rate.