South Korean Retail Investors Go Big During Chuseok
South Korean retail investors made substantial investments in American technology stocks and cryptocurrency assets during the Chuseok holiday week. From October 3 to 9, 2025, while the domestic markets were closed for the traditional harvest celebration, these investors allocated $1.24 billion to overseas assets, predominantly focusing on high-risk, leveraged products. Data from the Korea Securities Depository indicates a distinct trend: South Korean investors are opting for high-stakes investments rather than safer alternatives. Instead of taking a break during their national holiday, they gravitated toward some of the most volatile options available in the global financial landscape.
Leading Investments in Leveraged Products
The standout performer in this investment spree was the Direxion Daily Tesla Bull 2X ETF, which attracted $151 million in net purchases. This particular ETF doubles the daily fluctuations of Tesla’s stock, amplifying profits when prices rise but also intensifying losses during downturns. Following closely was Iris Energy, an Australian Bitcoin mining firm, which saw $105 million in investment. Meta Platforms garnered $100 million, while Tesla’s stock itself received $96 million in direct purchases. Completing the top five was the T-REX 2X Long BMNR Daily Target ETF, with $95 million, another leveraged product associated with Bitcoin mining. This selection underscores a significant trend among Korean retail investors: a preference for heightened exposure rather than conventional stock investments. Four of the top five assets involved either leveraged characteristics or cryptocurrency mining, both notorious for their extreme price volatility.
The “Ant Army” Continues to Advance
South Korean retail investors have earned the moniker “ants” due to their collective influence in the market. These individual traders are known for their bold risk-taking, supported by the nation’s rapid internet connectivity and user-friendly mobile trading applications. The spending spree during Chuseok was not an isolated incident. By March 2025, Korean investors had already channeled $10.2 billion into US stocks and ETFs—the highest quarterly inflow recorded since 2011. However, this aggressive approach has led to setbacks in the past. Earlier in 2025, many Korean investors held over 90% of a triple-leveraged Tesla product that plummeted more than 80% from its peak in December, while Tesla’s stock itself only fell by 41% in the same timeframe, emphasizing the risks associated with leverage.
Market Timing Presents Challenges
The surge in holiday investments coincided with a precarious market environment. Just prior to Chuseok, Seoul’s stock market was achieving record highs, with the Kospi Index reaching new heights amid optimism surrounding US tech performance and domestic stimulus initiatives. Upon reopening after the holiday, the Kospi soared to 3,610 points, surpassing the 3,600 mark for the first time. This rally was primarily driven by foreign investors, who purchased over $700 million in Korean stocks in a single day. However, the overseas investments made during Chuseok encountered immediate obstacles. During South Korea’s holiday week, global markets faced setbacks due to escalating US-China trade tensions. Consequently, the Kospi opened 1.7% lower on the Monday following Chuseok, erasing much of its previous gains.
South Korea’s Complicated Relationship with Crypto
The significant investment in cryptocurrency-related assets stands out against the backdrop of South Korea’s recent struggles in the crypto market. From January to June 2025, the domestic cryptocurrency sector lost roughly $24 billion in value, with daily trading volumes on local exchanges collapsing by 80%—dropping from 17.1 trillion won in December 2024 to just 3.2 trillion won by June. Despite these challenges, cryptocurrency remains immensely popular in South Korea, with over 16 million citizens—nearly a third of the population—holding cryptocurrency accounts. Collectively, these accounts contain approximately $70 billion in digital assets. South Korea ranks as the second-largest crypto market globally, with $1 trillion in crypto transactions recorded between July 2024 and June 2025, trailing only the United States, which stands at $4.2 trillion. The political landscape has also shifted favorably towards cryptocurrency, as President Lee Jae-myung, who took office in June 2025, supports the legalization of crypto ETFs and the participation of major institutions like the National Pension Fund in digital asset investments.
Reasons Behind Continued Aggressive Investment
Several factors explain why South Korean investors persist in making bold bets despite past setbacks. Cultural influences play a significant role, as South Korea’s competitive ethos and focus on rapid wealth accumulation drive many investors toward high-risk, high-reward avenues. The nation’s tech-savvy populace makes mobile trading highly accessible. Additionally, limited domestic investment opportunities contribute to this trend. While the Kospi has recently reached record highs, it still trades at lower valuations compared to many global counterparts, prompting investors to seek growth overseas. The fear of missing out (FOMO) is also a powerful motivator. When specific investments gain traction on Korean trading platforms, they can experience explosive buying within hours, creating a feedback loop where early adopters reap profits, encouraging others to join in. The allure of leverage cannot be overlooked either; many Korean retail traders find standard stock purchases too slow, leading them to favor leveraged products that promise to amplify gains—even as they also heighten potential losses.
Conclusion
The $1.24 billion investment wave during Chuseok illustrates that South Korean retail investors remain steadfast in their high-risk trading approach. Previous losses linked to leveraged products and a declining domestic crypto market have not diminished their enthusiasm for risk-taking. The success of this strategy will heavily depend on market timing and conditions. Investors who jumped in during Chuseok are now grappling with immediate challenges as global markets have weakened. However, given South Korea’s history as a bellwether for crypto and tech trends, observing where these “ants” direct their investments next may provide valuable insights into the broader market trajectory.
