Archive · 8 Dec 2025
South Korean Retail Traders Blamed for Won Slide
South Korean retail investors have been buying a lot of US stocks this year, which has made the Korean won weaker.
The government and some officials blame these investors for the currency's decline.
However, many investors feel unfairly targeted and argue that broader economic factors are more responsible.
They turned to overseas investments because the local stock market and real estate were not giving them good returns.
The government is now making rules stricter on buying certain types of foreign investments, but some investors say they might return to the local market if conditions improve.
South Korean retail investors bought a record $31 billion in US stocks this year.
The Bank of Korea and officials blame these purchases for weakening the Korean won.
Investors feel unfairly targeted and argue broader economic factors are more responsible.
The Kospi Index has risen over 70% this year, but investors still prefer overseas stocks.
The government is tightening rules on leveraged buying of offshore ETFs.
- Who
- South Korean retail investors
- What
- Blamed for weakening Korean won due to US stock purchases
- When
- This year, with significant outflows in October
- Where
- South Korea
- Why
- Investors seeking higher returns due to stagnant local market and high real estate prices
- Retail Investors
- 14 million mom-and-pop investors
- Currency Impact
- Won near 16-year low
- Kospi Index
- Risen over 70% this year
- Government Response
- Tightening rules on leveraged ETFs
- Investor Sentiment
- Frustration over stagnant local market