Between October 3 and 9, 2025, while domestic markets sat closed for the traditional harvest festival, these investors moved $1.24 billion into overseas investments—mostly targeting high-risk, leveraged products.

The data from the Korea Securities Depository shows a clear pattern: South Korean investors aren’t interested in playing it safe. Instead of resting during their country’s equivalent of Thanksgiving, they chased some of the most volatile investment options available in global markets.

Leveraged Tesla Bets Lead the Pack

The biggest winner was the Direxion Daily Tesla Bull 2X ETF, which received $151 million in net purchases. This product doubles the daily movements of Tesla stock, meaning bigger gains when the price rises—but also steeper losses when it falls.

Close behind came $105 million invested in Iris Energy, an Australian Bitcoin mining company. Meta Platforms attracted $100 million, while Tesla stock itself received $96 million in direct purchases. Rounding out the top five was the T-REX 2X Long BMNR Daily Target ETF at $95 million, another leveraged product tracking Bitcoin mining operations.

These choices reveal something important about Korean retail investors: they prefer amplified exposure over standard stock purchases. Four of the five top investments involved either leverage or cryptocurrency mining—both known for extreme price swings.

The “Ant Army” Keeps Pushing Forward

South Korean retail investors have earned the nickname “ants” for their collective market power. These individual traders have built a reputation for aggressive risk-taking, powered by the country’s ultra-fast internet and easy-to-use mobile trading apps.

The Chuseok spending spree wasn’t an isolated event. Through March 2025, Korean investors had already pumped $10.2 billion into US stocks and ETFs—the highest quarterly inflow on record going back to 2011.

But this approach has burned them before. Earlier in 2025, many Korean investors held over 90% of a triple-leveraged Tesla product that crashed more than 80% from its December peak. Tesla’s stock itself only dropped 41% during the same period, showing how leverage magnifies losses.

Market Timing Creates Challenges

The holiday investment surge came at a tricky moment. Just before Chuseok, Seoul’s stock market had been hitting record highs. The Kospi Index reached fresh peaks on optimism about US tech strength and domestic stimulus plans.

When markets reopened after the week-long break, the Kospi jumped to 3,610 points—breaking above 3,600 for the first time ever. Foreign investors led this rally by buying over $700 million worth of Korean stocks on that single day.

However, the overseas investments made during Chuseok faced immediate headwinds. Global markets had stumbled during Korea’s holiday week due to rising US-China trade tensions. The Kospi actually opened 1.7% lower on the Monday after Chuseok ended, giving back much of its gains.

South Korea’s Complex Crypto Relationship

The heavy investment in crypto-related assets stands out against South Korea’s recent crypto market struggles. Between January and June 2025, the domestic crypto market lost approximately $24 billion in value. Daily trading volumes on local exchanges crashed 80%—falling from 17.1 trillion won in December 2024 to just 3.2 trillion won by June.

Yet crypto remains deeply popular in South Korea. Over 16 million South Koreans—nearly one-third of the country’s population—hold cryptocurrency accounts. These accounts collectively contain around $70 billion in digital assets.

The country also ranks as the world’s second-largest crypto market with $1 trillion in crypto purchases between July 2024 and June 2025. Only the United States, at $4.2 trillion, surpasses South Korea.

Political winds have shifted in crypto’s favor too. President Lee Jae-myung, who took office in June 2025, supports legalizing crypto ETFs and allowing major institutions like the National Pension Fund to invest in digital assets.

Why This Pattern Continues

Several factors explain why South Korean investors keep making these aggressive bets despite past losses:

Cultural factors play a role. South Korea’s competitive culture and emphasis on rapid wealth building drive many investors toward high-risk, high-reward strategies. The country’s tech-savvy population makes mobile trading accessible to nearly everyone.

Limited domestic options also matter. While the Kospi recently hit record highs, it still trades at lower valuations than many global peers. This pushes investors to look overseas for growth opportunities.

FOMO dynamics are strong. When certain investments start trending on Korean platforms, they can see explosive buying within hours. This creates a feedback loop where early movers profit, encouraging others to pile in.

The leverage aspect deserves attention too. Standard stock purchases feel too slow for many Korean retail traders. Leveraged products promise to multiply gains—even though they multiply losses just as effectively.

The Bottom Line

The $1.24 billion Chuseok investment wave shows that South Korean retail investors remain committed to their high-octane trading style. Neither previous losses from leveraged products nor a shrinking domestic crypto market has dampened their appetite for risk.

Whether this approach pays off depends heavily on timing and market conditions. The investors who bought during Chuseok faced immediate challenges as global markets weakened. But given South Korea’s track record as a leading indicator for crypto and tech trends, watching where these “ants” invest next might offer clues about broader market movements ahead.

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Filed under: Bitcoin - @ October 14, 2025 8:20 pm