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.


China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease
UK Markets Face Rising Volatility as Hedge Funds Target Pound and Gilts
KiwiSaver shakeup: private asset investment has risks that could outweigh the rewards
European Stocks Rally on Chinese Growth and Mining Merger Speculation
Trump and Lula Discuss Trade, Sanctions, and Security in “Productive” Phone Call
Tempus AI Stock Soars 18% After Pelosi's Investment Disclosure
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes
Wall Street Rebounds as Investors Eye Tariff Uncertainty, Jobs Report
China's Refining Industry Faces Major Shakeup Amid Challenges
China’s Growth Faces Structural Challenges Amid Doubts Over Data
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets
Why the Middle East is being left behind by global climate finance plans
S&P 500 Surges Ahead of Trump Inauguration as Markets Rally
Infosys Shares Drop Amid Earnings Quality Concerns
Ferrari Group to Launch IPO in Amsterdam, Targets Over $1 Billion Valuation 



