Korean holding in offshore stocks shrinks 22% this year amid global bearishness

South Korean investors are pulling out of offshore stocks after domestic shares as equity crash becomes global.

Offshore equity certificates parked at the Korea Securities Depository valued at $78.3 billion as of Oct. 21, shrinking 22.1 percent from $100.5 billion in December 31, 2021 due to withdrawals and retreat in the equity value from price falls.

The crash in big-tech stocks have scared off mom-and-pop Korean investors.

Tesla and other U.S. tech names however remain favorites.

According to a Korea Securities Depository official, Korean individuals could make the top 10 largest shareholder group in the EV maker if they are bundled up.

Other names Koreans have stayed loyal are Apple, Nvidia, Alphabet A, Microsoft, and Amazon.

U.S. equities comprise more than 64 percent of Korean investors¡¯ offshore stockholding, according to the Korean central securities depository. Stocks trading in the U.S., the European Union, Japan, Hong Kong, and China account for 97 percent of their total deposit.

The Korea Securities Depository stores about 22,000 stocks listed on foreign exchanges in 40 countries across the world from big markets like the U.S and Japan, as well as emerging markets like China, Vietnam, and India. Stocks are managed via five foreign securities depository service providers.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]