Investors who focus on high-quality domestic stocks after selling overseas stocks have active capital flows.

Individual investors who have gained profits from overseas stock investments are recently transferring their funds back to the domestic stock market, showing a clear trend of concentrated investment in large domestic high-quality stocks and tracking KOSPI200 index-listed index funds.

According to analysis released by Shinhan Investment Securities on April 14, since the launch of the domestic market return account on March 23, clients who sold U.S. artificial intelligence and large technology-related stocks to realize gains have reallocated their funds into representative domestic stocks and index products. RIA accounts focus on transferring overseas investment funds back to the domestic market, and during recent periods of significant gains in overseas tech stocks, they can also be seen as indicators of capital flow after profit-taking.

In fact, as of April 3, among the overseas stocks sold through this account, Nvidia accounted for the highest proportion at 19.1% of the total overseas stock sales. Next were Apple at 7.8%, Tesla at 7.4%, Alphabet Class A at 6.8%, and Palantir Technologies at 5.4%. On the other hand, the domestic stocks most purchased by investors closing out overseas positions were SK Hynix, accounting for 15.7%, followed closely by Samsung Electronics at 15.4%. Additionally, the KODEX 200 ETF based on the KOSPI200 index accounted for 4.1%, Hyundai Motor for 3.6%, and TIGER 200 ETF for 2.5%, all ranking among the top. This indicates that investors are diversifying the gains from individual growth stocks into large domestic semiconductor stocks and index products that track the overall market.

In terms of investment scale, the average amount deposited into overseas stocks via RIA accounts is about 30 million Korean won, reaching 60% of the 50 million won deposit limit. Among these, 43.7% of clients actually sold overseas stocks, with an average profit of approximately 13 million Korean won per client. Regarding investor demographics, men account for 65.3%, women for 34.7%; by age group, those in their 40s make up the largest share at 31.4%. Next are those in their 50s at 26.2%, in their 30s at 23.4%, over 60 at 11.9%, and under 20 at 7.1%. This suggests that the 40-50 age group, with relatively larger assets and more investment experience, is actively transferring overseas gains into domestic assets.

This trend can be seen as a combination of profit-taking after the surge in overseas tech stocks and a preference for representative domestic companies (especially in semiconductors and index-tracking products). The greater the market volatility, the more investors tend to shift their focus from individual high-growth stocks to large-cap stocks with relatively stable fundamentals or diversified index funds. Moving forward, if the upward trend of U.S. tech stocks, domestic stock market attractiveness, and policy environment changes interact, the flow of overseas investment gains back into high-quality domestic stocks may continue for some time.