Korean retail investors net purchased $1.5632 billion in overseas stocks from June 27 to July 3, per Korea Securities Depository data released on July 5. The total equates to approximately 2.4 trillion won, with three of the top five purchases being leveraged exchange-traded funds (ETFs) tracking semiconductors and Korean equities. Aggressive buying persisted despite market volatility triggered by Meta's reported cloud business expansion and Apple's consideration of purchasing chips from a sanctioned Chinese semiconductor company.
Korean Investors Pour $1.14 Billion into SOXL Semiconductor ETF
The top net purchase was the Direxion Daily Semiconductors Bull 3X Shares ETF (SOXL), which tracks three times the daily return of the Philadelphia Semiconductor Index. Investors bought $1.1428 billion (approximately 1.7468 trillion won) of SOXL during the period. The third-ranked purchase was the Roundhill T-Rex 2X Long DRAM Daily Target ETF, which tracks global memory semiconductor companies including Samsung Electronics, SK Hynix, Micron, and SanDisk at two times leverage, with net purchases totaling $231.93 million (about 354.389 billion won). The fourth-ranked purchase was the Direxion Daily MSCI South Korea Bull 3X Shares ETF (KORU), which tracks Korean stocks at three times leverage, attracting $188.51 million (approximately 288.043 billion won) in inflows.
Meta Cloud Plans and Apple China Reports Trigger Market Volatility
Global stock markets experienced heightened volatility this week following reports that Meta is considering entering the cloud business by selling surplus computing resources acquired during AI infrastructure buildout to external companies, raising concerns over AI overinvestment. Separately, reports emerged that Apple is reviewing purchases of chips from a Chinese semiconductor company subject to US sanctions, adding pressure on the semiconductor sector.
SK Hynix and Samsung Electronics Experience Double-Digit Swings
In the Korean market, SK Hynix fell 14.57% on July 2, then rebounded 10.88% the following day. Samsung Electronics dropped 9.06% before surging 8.22%, exhibiting rollercoaster price action. US semiconductor stocks underwent significant corrections: Micron Technology plummeted 10.57% on July 1 (local time) and declined another 5.49% the next day. SanDisk dropped 10.62% and 14.13% over two consecutive days during the same period, amplifying volatility.
Samsung Electronics and SK Hynix Earnings Reports Scheduled for July
Samsung Electronics is scheduled to release its Q2 preliminary earnings results next week. SK Hynix's American Depositary Receipt (ADR) listing and earnings announcement will follow. US Big Tech M7 companies are scheduled to disclose earnings later this month.
FAQ
Q: What did Korean retail investors purchase in overseas stocks from June 27 to July 3?
A: Korean retail investors net purchased $1.5632 billion (approximately 2.4 trillion won) in overseas stocks during this period, with three of the top five purchases being leveraged ETFs tracking semiconductors and Korean equities, according to Korea Securities Depository data released on July 5.
Q: Why did semiconductor stocks experience high volatility this week?
A: Volatility was triggered by reports that Meta is considering entering the cloud business by selling surplus AI computing resources and that Apple is reviewing chip purchases from a Chinese semiconductor company subject to US sanctions, raising concerns over AI investment sustainability and sector stability.
Q: How did SK Hynix and Samsung Electronics stock prices move on July 2 and the following day?
A: SK Hynix fell 14.57% on July 2, then rebounded 10.88% the next day. Samsung Electronics dropped 9.06% before rising 8.22%, exhibiting sharp two-day swings.
