TLDR
- $1.24B moved overseas by Korean investors during the Chuseok holiday week.
- Leveraged Tesla ETFs led with $151M in purchases by Korean retail traders.
- Iris Energy and Meta each saw over $100M in new Korean investments.
- Over 16M South Koreans hold crypto, with $70B in total digital assets.
During South Korea’s Chuseok holiday week, when domestic markets were closed, investors redirected their attention overseas. Between October 3 and 9, 2025, South Korean retail investors transferred about $1.24 billion into global markets. Most of these funds went into high-risk, leveraged products and crypto-related assets, showing a strong appetite for fast-moving investments even as global markets showed signs of weakness.
Surge in Overseas Investments During Chuseok
Data from the Korea Securities Depository showed that investors made large overseas purchases while the local market was inactive. The top investment was the Direxion Daily Tesla Bull 2X ETF, which saw inflows of $151 million. This fund amplifies Tesla’s daily stock movements, offering higher gains when prices rise and deeper losses when they fall.
Iris Energy, an Australian Bitcoin mining company, attracted $105 million in purchases. Meta Platforms followed with $100 million, and direct Tesla stock received $96 million. Another leveraged product, the T-REX 2X Long BMNR Daily Target ETF, gained $95 million. These choices revealed investors’ focus on sectors connected to technology and digital assets.
Risk Appetite Among South Korean Retail Investors
South Korea’s retail traders, often called “ants,” have become known for their active and risk-driven approach. Easy access to mobile trading apps and ultra-fast internet supports their ability to trade quickly. Their investment patterns show a preference for leveraged and high-volatility products rather than traditional long-term holdings.
This behavior continued despite past setbacks. Earlier in 2025, many investors experienced steep losses from leveraged Tesla ETFs that dropped more than 80% from their peak. Yet the same products drew strong inflows again during Chuseok, reflecting persistent interest in amplified trading opportunities.
Market Timing and Global Conditions
The Chuseok investment period coincided with a challenging week for global markets. Rising trade tensions between the United States and China caused short-term weakness in technology and crypto-related assets. When Korean markets reopened after the holiday, the Kospi Index initially rose to a record high of 3,610 points before slipping 1.7% on the following trading day.
Despite the timing, domestic optimism remained strong. Foreign investors purchased over $700 million worth of Korean stocks on the first trading day after Chuseok. Analysts noted that Korean retail investors continued to seek returns abroad even as the local market reached new highs, viewing overseas opportunities as more attractive.
Crypto Exposure and Regulatory Support
The move toward crypto-linked investments came during a slow period for South Korea’s domestic crypto market. From January to June 2025, local crypto assets lost around $24 billion in value, and daily trading volumes fell sharply. Yet over 16 million South Koreans still hold digital assets, and total holdings amount to roughly $70 billion.
South Korea remains the second-largest global crypto market by purchase volume, behind only the United States. The new administration under President Lee Jae-myung has voiced support for crypto-friendly regulation. Plans to legalize crypto ETFs and allow institutional participation may further encourage investor activity in the sector.
Cultural and Structural Drivers
Several factors continue to drive this behavior among South Korean investors. A strong desire for rapid financial growth, limited local market returns, and online trading accessibility all contribute to this trend. Social media and online forums often fuel Fear of Missing Out, pushing many to follow popular global trades.
The $1.24 billion overseas investment wave during the Chuseok week showed that South Korean retail investors remain committed to fast-paced, high-risk trading. Their focus on leveraged tech and crypto products suggests continued confidence in volatile markets, despite short-term fluctuations and earlier losses.
