Why Do Koreans Invest So Much in US Stocks? Seohak Ants

Koreans invest so much in US stocks because the Korean market has paid them less than the American one, because Korean companies pay low dividends, and because dollar assets protect savers when the won weakens. As of 5 October 2026, Korean individuals held about US$200.2 billion of US stocks, according to Korea Securities Depository (SEIBro) data reported by SBS. They are nicknamed seohak gaemi, “Seohak ants”, and a 2026 tax scheme meant to pull them home has only partly worked.

Last updated: October 31, 2026

Key takeaways

Korean retail holdings of US stocks first passed US$200 billion on 11 May 2026 and stood at about US$200.2 billion on 5 October 2026 (SEIBro data, as reported by SBS). The figure swings with US prices and the won-dollar rate.
Overseas stock gains are taxed at 22% above 2.5 million won a year (National Tax Service). A 10 million won gain costs about 1.65 million won in tax.
The government launched reshoring investment accounts (RIA) on 23 March 2026 with up to a 100% tax deduction, but net buying of US stocks rebounded by July.
Foreign residents are only taxed on overseas stock gains after five continuous years of domicile or residence in Korea (NTS).

US stocks at a glance: Korean retail investors hold roughly US$200 billion in US stocks, mostly large technology names and a few leveraged ETFs. Gains on US stocks are taxed at 22% above 2.5 million won a year, a weak won has made US stocks a dollar hedge, and a 2026 reshoring account has not stopped the buying of US stocks. The sections below cover why Koreans buy US stocks, who the Seohak ants are and how the tax works.

Why do Koreans invest so much in US stocks? Three reasons

A laptop showing a rising line chart on a desk in a Seoul apartment at night

1. The Korean market has paid less

Analysts call it the “Korea discount”: Korean listed companies trade at lower valuations than comparable firms elsewhere. The Korea Times, citing the Korean Corporate Governance Forum in June 2024, reported that total returns from the domestic market averaged about 5% a year over the previous decade, against 13% in the US and 11% in Japan, and that US$10,000 invested ten years earlier would have become US$16,829 in Korea and US$33,946 in the US. Treat this as an argument that shaped savers’ thinking, not a current measurement.

Dividends add to the gap. The same article, citing Financial Services Commission data, gave the ten-year average payout ratio of Korean listed companies as 26%, versus 42% in the US, and said 24% of 782 KOSPI companies paid no dividend from 2020 to 2022.

2. The won has been weak

In March 2026 the Korea Herald reported that the won had hit a 17-year low and that the government regarded US stock buying as dollar demand pressing on the currency. A saver whose salary and rent are in won can use dollar assets as insurance.

3. It is easy

Korean brokerage apps treat US stocks like local ones. In 2024 the Korea Times reported that overseas ETFs made up 19.7% of investments in tax-advantaged ISA accounts, versus 7.3% for domestic ETFs, the first time overseas ETFs had overtaken them.

Who are the seohak ants?

Gaemi means “ant”, the Korean word for a small retail investor in a market dominated by institutions. Seohak means “Western learning”, the nickname for investors who buy overseas stocks. During the 2020 retail boom, domestic buyers were called “Donghak ants”; the Seohak ants look abroad.

SBS reported that holdings first topped US$200 billion on 11 May 2026, hit a record US$206.3 billion on 2 June, fell to US$171.5 billion at the end of July and recovered above US$200 billion on 5 October. These are market values, so they move with prices and exchange rates, not only with purchases. The top holdings were Tesla (US$22.1 billion), Nvidia (US$19.2 billion) and Alphabet (US$8.9 billion), followed by the 3x leveraged semiconductor ETF SOXL (US$5.8 billion) and the Nasdaq-100 ETF QQQ (US$5.7 billion). That is a concentrated, technology-heavy portfolio.

What are Korea’s reshoring investment accounts (RIA)?

The reshoring investment account (gungnae sijang bokgwi gyejwa) was launched by brokerages on 23 March 2026 to draw dollar assets back into Korean shares. Terms, from Korea Investment and Securities’ notice of 20 March and Digital Today:

Term	Rule
Who	Korean-national individual residents; one account per brokerage
Eligible shares	Overseas stocks held on 23 Dec 2025, sold inside the RIA
Cap	50 million won (about US$35,700) of sales, across all brokers
Deduction on capital gains	100% for sales settled to May 2026; 80% June to July; 50% August to December
Condition	Convert proceeds to won and hold Korean stocks or funds for at least one year; early withdrawal means the tax is clawed back
Penalty	The deduction shrinks if you net-buy overseas stocks or substitutes in any other account in 2026

The deduction rate depends on the date a sale settles, not the trade date, and only sales settled by 31 December 2026 qualify (Restriction of Special Taxation Act, Article 91-26). The percentage is applied to the capital gain, not to the tax rate.

It seemed to work at first. The Korea Herald, citing the Korea Securities Depository, said net purchases of US stocks fell from US$5 billion in January to US$390.86 million in the first weeks of March. But the Korea Times reported on 6 August that RIA balances fell by about 500 billion won in two months to 2.13 trillion won on 31 July, and that US net buying jumped to US$4.67 billion in July as the KOSPI fell more than 20% while the Nasdaq slipped about 2%. Yonhap put the KOSPI’s July fall at 22.2%, its worst month since October 2008. SBS reported continued net buying of US$1.96 billion in August and US$1.0 billion in September. Analysts’ reading: savers put capital protection ahead of tax savings.

How are US stock gains taxed in Korea?

The Yeouido financial district skyline in Seoul at dusk across the Han River

The National Tax Service rules, as of this writing:

The rate is 22%: 20% income tax plus local income tax of 10% of that.
The first 2.5 million won of annual gains is deductible, once, across domestic and overseas stocks combined.
Gains and losses on overseas and taxable domestic stocks can be netted (since 2020).
You file for the previous calendar year between 1 and 31 May on Hometax; not filing carries a 20% penalty on the unpaid tax.

Worked example (illustration): you sell US shares for a 10 million won gain (about US$7,100). Taxable gain = 10,000,000 − 2,500,000 = 7,500,000 won. Tax = 22% = 1,650,000 won (about US$1,180). Brokerages such as KB Securities offer free filing assistance for individuals with gains above 2.5 million won; ask yours in April.

Dividends are different. Dividends from overseas stocks count as financial income, which can be added to your other income for tax if your total financial income passes 20 million won a year.

Is household money moving into stocks overall?

The Bank of Korea’s flow-of-funds data for the second quarter of 2026 (released 7 October, as reported by Seoul Economic Daily) point the same way: households put 101.6 trillion won into equities and investment funds in the quarter, up from 61.4 trillion won in the first, while their deposits at financial institutions swung to minus 23.3 trillion won. That total covers domestic and overseas holdings together, so it does not isolate US stocks, but it shows savers moving out of bank deposits.

See also: why retired Koreans open chicken shops and cafés and why Korean homes have such large rental deposits for two other places where Korean savings go.

What does this mean for you?

Visitors: nothing, unless you open a Korean brokerage account, which generally requires residency.

Expats: the NTS says overseas stocks are taxable for residents who have kept a domicile or residence in Korea continuously for five years or more at the date of sale. If you have been here a shorter time, that tax does not apply, but your home country may tax you. Check your status with the NTS (1544-9944) before relying on this.

Korean workers: the main risks are concentration (a portfolio of Tesla, Nvidia and a 3x ETF falls hard in a tech sell-off), leverage (daily 3x moves), and currency swings, which can add to or erase dollar gains.

Common mistakes: forgetting the May filing, treating the 2.5 million won deduction as per broker instead of per person per year, and buying overseas ETFs in another account after joining the RIA, which cuts the deduction. For how Koreans handle cash across accounts, see why Koreans split their salary across bank accounts.

FAQ

What does seohak gaemi mean?

“Western learning ants”, the nickname for Korean retail investors who buy overseas, mostly US, stocks. “Ants” is the usual Korean term for small individual investors.

How much US stock do Koreans own?

About US$200.2 billion as of 5 October 2026 per SEIBro data reported by SBS. It changes daily.

Do Koreans pay tax on US stock gains?

Yes: 22% above 2.5 million won a year, filed each May.

Is Korean buying of US stocks bad for the won?

Officials treat it as dollar demand that adds pressure on the won, which is why the RIA exists. The size of the effect is debated and global factors also matter.

Do foreigners living in Korea pay tax on US stock gains?

Only residents with five or more continuous years of domicile or residence in Korea are taxed on overseas stocks under the NTS rule. Confirm your own case.

What is the reshoring investment account?

A tax-advantaged account launched on 23 March 2026 that cuts capital gains tax on overseas shares sold and reinvested in Korean stocks for one year. *Educational content, not investment or tax advice.*

Sources and further reading

Checked October 31, 2026.