South Korea's 'ant investors' are marching to U.S. equities even as domestic market hits record highs

south korea was the third largest buyer of u.s. stocks in 2025, behind singapore and norway, with net purchases of $73.6 billion — nearly five times the 2024 total. this rush continues even as the domestic kospi index delivered 75% returns last year and hit new highs this year. the bank of korea reported last week that u.s. investments now make up 63.4% of the country's overall external portfolio, far above the 25.3% average for advanced economies. about 15 million retail investors — known as "seohak ants" — drive 60% to 70% of annual trading volume, according to gam investments. settlement data shows net purchases of u.s. equities exceeded total net overseas purchases, meaning investors sold non-u.s. assets to keep buying american stocks. seoul announced tax breaks in december for investors who sell foreign holdings and reinvest in domestic stocks for a year. but in the first two months of 2026, south korea was still the largest net buyer of u.s. stocks at almost $10 billion. yuanta securities' daniel yoo said the measures might "partially" work in the short term but aren't enough to keep ants away.