As the domestic stock market continues to show strength this year, investments in overseas securities have also increased. Notably, the share of U.S. stocks in the overseas portfolios of domestic investors has risen to 77%, reflecting a growing preference for investments centered around artificial intelligence (AI) and semiconductors.
According to data from the Korea Securities Depository on June 30, the total value of overseas securities held by domestic investors increased by 7.5% from approximately 304 trillion won (about $225.4 billion) at the end of last year to around 327 trillion won (approximately $242.3 billion) as of June 25. During the same period, the value of U.S. stocks held rose by 14.1%, from about 221 trillion won (approximately $163.6 billion) to around 252 trillion won (approximately $186.9 billion). Consequently, the proportion of U.S. stocks in the total overseas securities holdings increased from 72.6% at the end of last year to 77.0%.
The trend shows a clear preference for U.S. stocks over other markets. The value of Chinese stocks held decreased by 7.7%, from $918.5 million at the end of last year to $847.3 million as of June 25, while Hong Kong stocks fell by 6.9%, from $251.3 million to $234.0 million. In contrast, Japanese stocks saw a 12.2% increase, rising from $332.4 million to $372.9 million, but still lagged significantly behind U.S. holdings. This means that for every $10 invested in overseas securities, approximately $7.7 is allocated to U.S. stocks.
The top holdings in overseas stocks are dominated by major U.S. tech companies and AI-related firms. As of June 25, Tesla led with a holding value of $22.1 billion, followed by Nvidia, Alphabet A, the Direxion Daily Semiconductor Bull 3X ETF, Micron, and the Invesco QQQ ETF. This indicates that U.S. tech stocks and AI semiconductor companies are central to the overseas asset portfolios of domestic investors.
Market analysts are identifying AI and semiconductors as key themes for overseas investments in the second half of the year. Shinhan Investment Corp. has selected Micron, Intel, Tower Semiconductor, and Nevius as recommended stocks for next month, highlighting the expansion of AI infrastructure investments and improvements in memory market conditions. With expectations for continued profit growth among U.S. tech stocks, it is anticipated that domestic investors will maintain an AI and semiconductor-focused portfolio for the foreseeable future.
* This article has been translated by AI.
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