South Korea has transformed from a country that mainly earned money by selling goods overseas to one that now makes profits by investing its capital abroad.
In fact, until 2013, S. Korea was a debtor nation, meaning foreign investors had more money in the country than S. Koreans had invested abroad. However things changed in 2014. Companies like Samsung Electronics started building factories overseas, such as in Vietnam, while the National Pension Service (NPS) increased investments in foreign stocks, bonds, and real estate.
At the same time, individual investors, hoping for higher returns, began putting their money into overseas markets. As a result, S. Korea has shifted from making money mainly by selling products abroad to earning income through global investments.
Last year, S. Korea’s net external financial assets—the total value of overseas investments made by South Koreans minus foreign investments in South Korea—topped $1 trillion. This is a major milestone, providing the country with a strong economic buffer. With about $415.6 billion in foreign exchange reserves, the additional $1.1023 trillion in net overseas assets further strengthens S. Korea’s financial stability. According to the International Monetary Fund (IMF), the country’s ranking in net external financial assets surged from 133rd in 2012 to 7th place last year.
A big reason for this growth is the rise of “Seohak ants,” a nickname for S. Korean retail investors who actively buy foreign stocks. In 2011, they held just $7.6 billion in overseas stocks and bonds, but by 2024, that figure had skyrocketed to $158.7 billion—20 times more.
Compared to the previous year, their investments jumped by more than 50%, showing that interest in overseas markets remains strong. The U.S. stock market played a big role in this, with the S&P 500 rising 23% and the Nasdaq surging 29% last year.
Stock markets in Japan and Europe also hit record highs, leading to more S. Koreans investing in those regions, earning them nicknames like “Ilhak ants” (for Japanese stocks) and “Europe ants” (for European stocks).
Young S. Korean investors have been at the forefront of this trend, particularly investing in companies like Nvidia and Tesla. With Nvidia’s stock price soaring 171% and Tesla’s rising 63% last year, some investors became so enthusiastic about these stocks that new nicknames for them have even become popular in S. Korea. Also, seeing others make big profits, more people jumped in, afraid of missing out—what’s often called FOMO (fear of missing out).
Lee, a 32-year-old office worker, said, “A friend of mine made a lot of money with Nvidia, and that got me into investing. I believe the U.S. tech industry is too big to fail.”
Keeping up with this trend, South Korean brokerage firms are eager to attract these investors.
In 2024, companies like Samsung Securities and Meritz Securities launched promotions offering zero commission fees on foreign stock trades. Asset management firms, such as Samsung Asset Management, also introduced specialized investment products like the Kodex U.S. Seohak Ants Exchange-Traded Fund (ETF) to cater to this growing demand.
The National Pension Service (NPS), which manages retirement savings for S. Koreans, has also significantly increased its foreign investments. Its overseas stock and bond holdings surged from 197 trillion won (approximately $135 billion) in 2019 to $329.4 billion by the third quarter of last year, marking a 144% increase. Direct investments in foreign stocks alone grew from $43.9 billion to $130 billion in the same period. The NPS now aims to raise its foreign investment ratio from 50% to 60% by 2028.
