Korean investors secured profits of approximately 420 billion won through Tesla stock and related ETF sales over just two trading days. (Image courtesy of Yonhap)
SEOUL, Nov. 13 (Korea Bizwire) – Lee, a 32-year-old office worker from Incheon, has been waking up in the middle of the night to check his investment portfolio, often exclaiming “Thank you, Musk” before falling back asleep.
His enthusiasm stems from a remarkable turnaround in his 10-million-won investment in Tesla, which had previously plunged 30% amid concerns over a drop in demand for electric vehicles and weak third-quarter results.
“While Trump’s victory might be debatable for the nation, it’s certainly been a windfall for my wallet,” said Lee, who moved his entire portfolio from the Korean market to Tesla. “It turned out to be the best decision I could have made.”
Lee’s experience reflects a broader trend among South Korean retail investors who have reaped substantial gains following Donald Trump’s presidential victory and the subsequent surge in Tesla’s stock price.
According to the Korea Securities Depository, Korean investors secured profits of approximately 420 billion won through Tesla stock and related ETF sales over just two trading days, November 8 and 11. They sold $169.75 million worth of Tesla shares and $132.95 million in TSLL, a leveraged Tesla ETF.
Tesla’s stock began its dramatic ascent on November 6 following the election results, surging 14.75% in a single day and maintaining its upward momentum. Due to Korea’s T+2 settlement system, the massive profits were realized within just two days after the U.S. election.
Despite the significant selling pressure, buying interest remained robust. On November 8 alone, Korean investors purchased $365.24 million worth of Tesla shares and $252.92 million in TSLL ETF units — more than triple the trading volume of the second-most-traded stock, NVIDIA ($107.95 million).
The post-election rally has pushed Korean investors’ Tesla holdings to a record high of $17.91 billion as of November 8, surpassing the previous peak of $17.90 billion set in April 2022. Domestically listed Tesla-related ETFs have also soared, with the ACE Tesla Value Chain Active ETF posting gains exceeding 40% in a week.
However, the Korean stock market has failed to benefit from the “Trump trade.” The benchmark KOSPI has fallen below 2,500, with market heavyweight Samsung Electronics touching a 52-week low of 53,000 won during trading.
Market experts attribute this divergence to uncertainties surrounding Trump’s potential second-term policies.
“The Korean market’s top companies are in semiconductors, secondary batteries, and automobiles — all facing uncertainties around export conditions, tariffs, and Inflation Reduction Act policies,” said Shin Seung-jin, head of investment information at Samsung Securities.
“With foreign investors selling electronic sector stocks and domestic investors increasingly viewing U.S. stocks as an alternative, there’s a significant liquidity vacuum in the Korean market,” Shin added, noting that the won-dollar exchange rate has exceeded 1,400, reflecting broader market concerns.
M. H. Lee (mhlee@koreabizwire.com)
