South Korean investors turned their Chuseok holiday into a week of aggressive risk-taking, funneling $1.24 billion into US tech and crypto-linked assets while domestic markets were closed between October 3 and 9.
Key Takeaways:
- South Korean investors poured $1.24 billion into US tech and crypto-linked assets during the Chuseok holiday week.
- Top buys included Tesla, Meta, and Bitcoin mining stocks, with leveraged ETFs leading the surge.
- The buying spree ended abruptly as US–China trade tensions triggered a global market pullback.
Instead of taking time off during the country’s Thanksgiving break, retail investors piled into leveraged ETFs and high-growth stocks, according to data from the Korea Securities Depository.
Korean Investors Flock to Tesla, Meta, and Bitcoin Miner Stocks
The most popular target was the Direxion Daily Tesla Bull 2X ETF, a leveraged fund that amplifies Tesla’s stock movements, with net purchases totaling $151 million.
Other top buys included $105 million in Iris Energy, an Australian Bitcoin mining firm; $100 million in Meta Platforms, and $96 million in Tesla shares themselves.
Another leveraged crypto play, the T-REX 2X Long BMNR Daily Target ETF, which tracks Bitmine Immersion Technologies with double exposure, ranked fifth among foreign purchases at around $95 million.
The spree followed a strong rally in Seoul, where the Kospi Index hit new highs before the holiday amid optimism over US tech resilience and local stimulus plans.
With Korean exchanges closed, that bullish sentiment appeared to spill overseas as investors chased Wall Street’s momentum.
Breaking
South Korea warns traders there appears to be a massive carry trade that is about to blow up markets. If carry trade reverses, it will wipe out the countries entire financial system with its investors being all in on leveraged tech ETFs.$spy $qqq $dxy $tlt…— Roger (@rdd147) October 13, 2025
But timing may have worked against them. The surge in cross-border buying came just days before global markets tumbled on renewed US–China trade tensions, erasing part of the previous week’s gains.
Analysts say it remains to be seen whether Korean retail traders, known for their risk appetite and agility, will maintain such aggressive exposure.
The Kospi reopened 1.7% lower on Monday, slipping back below the 3,600 level and hinting that the Chuseok rally may have been short-lived.
South Korea Orders Crypto Exchanges to Halt Lending Services
In August, South Korea’s financial regulator moved to rein in risky lending practices in the digital asset sector, ordering local exchanges to suspend all crypto lending services until a proper regulatory framework is established.
The crackdown came amid South Korea’s broader pivot toward regulated crypto adoption. Authorities are lifting restrictions on institutional trading and preparing to approve the country’s first spot crypto ETFs.
President Lee Jae Myung’s administration is also working on a stablecoin framework pegged to the Korean won, signaling a more open approach to digital finance despite the latest curbs.
More recently, Dunamu, the operator of South Korea’s largest cryptocurrency exchange Upbit, unveiled a new custody service aimed at corporate and institutional clients, as regulatory green lights for virtual asset investments spark growing demand for secure storage solutions.
The service stores all deposited digital assets in cold wallets, entirely offline and insulated from internet-based threats, to shield holdings from cyberattacks and other external breaches.
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