The number of domestic investors investing in overseas stocks, often referred to as "Seohak Ants," is steadily increasing, focusing on technology stocks such as semiconductors, AI, and electronics. Furthermore, the volume of domestic stock and bond investments flowing into overseas markets is also showing an upward trend, suggesting that domestic companies will increasingly consider enhancing their shareholder return policies.

■ Investors flock to US tech stocks.

According to data from the Korea Securities Depository on the 18th, the amount of foreign currency securities held and settled by domestic investors in 2023 is expected to reach $104.1 billion (approximately KRW 139 trillion), up 35.9% year-on-year, and $382.6 billion (approximately KRW 512 trillion), up 1.9%.

Among these, the amount of foreign currency stocks held in custody was approximately $76.8 billion, a 38.8% increase compared to last year. It appears that most of the overseas stock investments by domestic investors are flowing into the U.S. market, with the U.S. accounting for 94.9% of the total foreign stock settlement amount, meaning that most of the money invested by domestic investors is actually being traded in U.S. stocks.

The top 10 stocks in terms of foreign currency stock holdings include: Tesla, Apple, Nvidia, PROSHARES ULTRA PRO QQQ ETF (an ETF that tracks three times the daily decline of the NASDAQ index), Microsoft (MS), Alphabet A, DIREXION DAILY SEMI-CONDUCTORS BULL 3X SHS ETF (a product that tracks three times the daily increase of the New York Philadelphia Semiconductor Index (SOX), and Amazon).

Excluding downtrending ETFs, most of the top-ranked stocks are related to AI, big tech, and semiconductors.

Recently, Microsoft reclaimed the top spot in market capitalization, surpassing Apple after two years and two months. This achievement is largely attributed to its leadership in commercializing generative AI services, fueled by factors such as its stake in OpenAI.

NVIDIA has also recently seen rapid performance and stock price growth, fueled by demand for AI server semiconductors. Domestic investors have also been adding NVIDIA to their portfolios, more than doubling their holdings from $1.8 billion in 2022 to $4.3 billion in 2023.

■ K-stock market deprivation still persists... AMD goes up 96 times while Samsung goes up only 3.7 times

The Korean stock market has always been plagued by the ignominious term "Korea Discount." The low shareholder return rate of 20%, compared to the US stock market such as NASDAQ, is increasing the sense of deprivation among investors investing in the domestic stock market.

In 2012, when Lee Jae-yong, the current chairman of Samsung Electronics, was promoted to vice chairman, Samsung Electronics' lowest price was around 20,220 won, according to Naver Securities charts. Samsung Electronics' common stock currently stands at 75,500 won, representing a 3.7-fold increase over the past 12 years.

This is also a decent performance. However, there is one company in the US stock market that has achieved record-breaking brand power and stock price growth linked to performance over the past 12 years: AMD.

AMD's stock price has risen 96-fold since its low of $1.81 in 2012, when current CEO Lisa Su was hired as Vice President. Compared to its current price of around $174, AMD has seen its stock price rise 96-fold. Recently, AMD has been focusing on AI semiconductors, and is expected to take a cut of Nvidia's market share, which boasts over 90% market share, fueled by the generative AI boom.

Differences in industry, corporate governance, and stock market conditions between the two companies make a simple comparison impossible. However, the difference in stock price appreciation between the two companies when they each held the positions of Vice Chairman and Vice President simultaneously and then achieved the honor of becoming Chairman and CEO can be seen as an interesting phenomenon. This passage clearly shows the real differences between the domestic and overseas stock markets, and it is necessary to pay attention to and prepare for the reality that domestic capital is increasingly flowing out to overseas investments.

■ Accelerating the shift to overseas stock markets
According to data from the Korea Deposit Insurance Corporation, the amount of foreign currency securities held and settled has been steadily increasing over the past five years.

While the reserve balance stood at $43.6 billion in 2019, it nearly tripled to $100.6 billion in 2021 during the COVID-19 pandemic, peaking thereafter. The following year, amidst the inflation crisis and rising interest rates, it slumped to $76.7 billion in 2022. Since then, the balance has been rising sharply, surpassing the previous peak of $104.2 billion in 2023, or approximately 140 trillion won.

Amid concerns about domestic investor exodus to the U.S. stock market, unlike in the past when domestic technology companies focused solely on strengthening their technological prowess and improving performance, it appears that companies will need to create their own ecosystems to implement shareholder return policies that enhance shareholder value in order to prevent the outflow of domestic capital.