Korean retail investors who profited from global AI and big tech stocks are shifting their funds into domestic blue chips and index-tracking exchange-traded funds, according to an analysis of trading data from Shinhan Investment Corp.'s "Return to Domestic Market Account" (RIA) launched last month.
As of January 3, Nvidia accounted for the highest proportion of foreign stock sales from RIA accounts at 19.1% of total overseas equity disposals, the brokerage said Wednesday. Apple followed at 7.8%, Tesla at 7.4%, Alphabet Class A at 6.8%, and Palantir at 5.4%, confirming a trend of profit-taking in global AI and big tech names.
Among domestic stocks, SK hynix (000660.KS) was the most purchased by customers who sold foreign equities, accounting for 15.7% of total domestic purchases. Samsung Electronics (005930.KS) came second at 15.4%, followed by KODEX 200 ETF at 4.1%, Hyundai Motor (005380.KS) at 3.6%, and TIGER 200 ETF at 2.5%.
The pattern suggests that investor preference for global big tech leaders has extended directly to Korean semiconductors and large-cap stocks. Analysts note that individual investors are strategically reallocating funds, taking advantage of tax benefits on overseas stock gains through RIA accounts while also positioning for domestic equity returns.
The average deposit amount for customers who transferred foreign stocks into RIA accounts was approximately 30 million won ($22,000), about 60% of the 50 million won limit. Of these customers, 43.7% sold their foreign holdings, realizing an average profit of roughly 13 million won per person.
Male investors accounted for 65.3% of RIA account holders, while females represented 34.7%. By age group, investors in their 40s comprised the largest share at 31.4%, followed by those in their 50s at 26.2%, 30s at 23.4%, 60s and above at 11.9%, and 20s and below at 7.1%, indicating strong investment demand among middle-aged investors.
"Individual investors are flexibly utilizing RIA accounts to transfer their overseas stock investment gains to the domestic market in line with policy conditions and market circumstances," a Shinhan Investment official said. "There is a clear trend of diversifying profits secured from AI and big tech stocks into domestic large-cap blue chips and index products."
