Korean retail investors in US stocks suffer as won strengthens
Hong, a woman in her 30s living in Seoul, is having second thoughts about her U.S. stock investments. "I increased the share of U.S. stocks in my portfolio about two months ago because the Korean market was doing poorly. But the stronger won has left my returns below expectations. I'm not sure whether to sell or just hold the stocks for the long term," she said. Hong is not alone. The won's…
Korean retail investors in U.S. stocks are experiencing losses as the won strengthens against the dollar, according to a report. A woman in her 30s, living in Seoul, reflects on her decision to increase her exposure to U.S. stocks two months ago, noting that the stronger won has dampened her returns. She is uncertain whether to sell or maintain her current position.
The report indicates that many Korean retail investors are facing similar currency losses, as the won-dollar exchange rate has plummeted from the 1,550-won range two months ago to 1,339.2 won per dollar. Analysts warn that a stronger won can substantially diminish returns, even if U.S. stocks perform well. For instance, a 20% gain on a U.S. stock would yield only about a 4% return for a Korean investor if the won depreciates by around 14%.
Consequently, some investors are contemplating selling their U.S. stocks, despite the potential currency gains, as the won's strengthening persists.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Korean retail investors in US stocks suffer as won strengthens koreatimes.co.kr
