Currency dealers work at the dealing room of Hana Bank in Seoul on Feb. 3, 2021. (Yonhap)
SEOUL, Dec. 7 (Korea Bizwire) — South Korea’s senior investors over 60 years of age are actively investing in foreign stocks as returns in the domestic stock market remain uninspiring.
The number of foreign stock accounts held by domestic retail investors stood at around 3.9 million in late October, double the roughly 1.9 million recorded late last year, according to data from the Financial Supervisory Service.
In terms of the number of such accounts, those in their 30s (1.2 million) and 20s (945,000) are main players.
However, in light of the growth rate compared to late last year, those in their 20s and 30s recorded growth of 95.8 percent and 86.8 percent, respectively, lower than 111.8 percent for those aged over 60.
The retired generation is turning their eyes towards overseas stock markets.
The primary factor behind this situation is that the yield rate of foreign stock markets is higher than that of domestic stock markets.
When it comes to Tesla Inc., the most net-bought foreign stock during the period from Jan. 1 to Nov. 19, 2021, the average net buying price was US$777.15. On the basis of the closing price of Dec. 3 ($1,014.97), its yield rate stood at 30.6 percent.
In contrast, when it comes to Samsung Electronics Co., the most net-bought domestic stock during the period, the average net buying price was 80,700 won (US$68.26), 6.3 percent higher than the closing price on Dec. 3 (75,600 won).
J. S. Shin (js_shin@koreabizwire.com)
