Korean investors, who were buying local stocks in the early days of the Covid-19 pandemic, bought more stocks in overseas markets, mainly in the U.S, in April and May as overseas markets pick up, indicating that they are more enthusiastic about investing in stocks overseas than in their home country.

According to data released by the Bank of Korea on July 7, Korean investors bought a net $5.51 billion (6.58 trillion won) of overseas stocks in May. That compares with the net buying of domestic stocks worth 3.883 trillion won. In April, they bought a net 5.43 billion dollars of overseas stocks, surpassing net buying of domestic stocks (4.96 trillion won).

In March, when the number of Covid-19 cases in the U.S. and Europe surged and their stock markets plummeted, South Korean investors mainly swept domestic stocks. Koreans bought more than 12 trillion won worth of local stocks, breaking the record in March.

However, as the three major indexes in New York have soared 40 to 50% in three months since mid-March and Tesla, FANG (Facebook, Amazon, Netflix, Google), and MAGA (Microsoft, Apple, Google, Amazon) are in the spotlight all over the world, Korean investors are also turning to overseas, local media Chosun Ilbo reported.

“The domestic investors include large pension funds such as the National Pension Service and the Korea Investment Corporation as well as general individual investors, securities firms and asset management companies,” an official from the Bank of Korea told the newspaper. (Reporting by Kyoungho Lee)