Number of foreign stock accounts by Korean nationals jump 74% H1 amid stock frenzy

[Graphics by Song Ji-yoon]

The number of accounts held by South Korean retail investors for foreign equity trading jumped 74 percent in June compared to a year ago as Korean individuals turn active in cross-border trade in search of greater profit.

According to the Financial Supervisory Service (FSS) data submitted to Rep. Jin Seon-mi from the National Assembly’s State Affairs Committee on Wednesday, Korean individual investors owned 3,310.981 overseas stock trading accounts as of the end of June, up 74 percent from the previous year.

Settlements for offshore stock trade by Korean nationals reached a record high of $289 billion as of the end of September, 45 percent higher than annual turnover of overseas stock transactions in 2020.

The value of overseas equities settlement amounted to $198.3 billion in 2020, rapidly growing from $32.6 billion in 2018 and $41 billion in 2019.

The settlement for U.S. stocks grew sharply to $267.4 billion in end-September in 2021, from $30.9 billion in 2019 and $178.1 billion in 2020.

Rep. Jin warned investors to consider the potential risks from the U.S. tapering and concerns of ‘slowflation,’ a period of slow growth accompanied by high inflation.

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