$77 billion "ammunition" ready to be deployed! South Korea's "Ant Army" bringing a massive amount of funds back, providing support for the continued rise of South Korean stocks.

Individual investors in South Korea are preparing to withdraw record amounts of funds back to the domestic stock market, aiming to chase profits in the world's hottest market. For many years prior, most of their funds flowed overseas. Data from the Korea Financial Investment Association shows that last week, the size of deposits available for retail investors in South Korean securities dealers to purchase stocks surged to a historic high of 111 trillion Korean won (approximately $770 billion), before slightly falling due to funds entering the market. At the same time, financing balance also hit a new high, highlighting the continued increase in enthusiasm for individual trader transactions. This data reflects a shift in the investment direction of individual investors in South Korea. Previously, even during the AI boom that drove the domestic stock market to strengthen, they still pursued American star assets such as Tesla, Inc. (TSLA.US) and Palantir (PLTR.US). Now, this massive cash reserve, combined with policy support from the South Korean government to guide funds back to the market, will inject new upward momentum into South Korean stocks. Uday Vikram, Co-Chief Investment Officer at Klay Group headquartered in Singapore, stated, "The signal of fund inflow is very clear. Domestic capital is re-entering the market with strong firepower, and this change in fund flow direction itself will become a continuous catalyst for the rise." Since the beginning of 2026, the benchmark Kospi index in South Korea has soared 31%, leading the global market for the second consecutive year, while the S&P 500 index has remained flat during the same period. In terms of net purchases, South Korean domestic institutions are the largest buyers in this current market trend. South Korean President Lee Jae-myung has prioritized boosting stock market valuations in his policies and is working hard to attract the so-called "Ant Army" of individual investors back to the market these investors are known for their highly coordinated actions. One of his key measures is to encourage people to transfer funds from the real estate market and overseas stock markets to domestic stocks in South Korea. Securities firms have followed the policy trend, launching intense customer acquisition battles through new account opening benefits such as coffee vouchers and free iPads. Data from the Korea Financial Investment Association shows that this series of promotions has started to take effect, with the number of active stock trading accounts in South Korea surpassing 100 million by the end of January. Sat Duhra, Portfolio Manager at Janus Henderson Investors, stated, "Compared to other markets, South Korean household assets are much more heavily invested in real estate than in stocks, so there is enormous potential for funds to shift from the property market to the stock market." If the influx of funds accelerates, the already highly volatile South Korean stock market may face even greater fluctuations. However, the government's determination to support the stock market is enough to counterbalance such risks. The "Reshoring Investment Account" (RIA) policy introduced by South Korea last month is expected to further boost this trend. According to the new regulations, investors who sell profits from overseas stocks and reinvest them in the domestic stock market for at least a year can receive up to 100% tax exemption on capital gains. In addition, South Korean regulatory authorities are preparing to approve single stock ETFs to attract individual investors seeking leverage returns. These products will amplify the fluctuations of single assets, but the leverage multiple for South Korean single stock ETFs will be limited to two times. Compilation data shows that the most favored stocks by the "Ant Army" in South Korea this year are Hyundai Motor, with its Siasun Robot & Automation business frequently trending; followed by SK Hynix and Samsung Electronics, both companies benefiting from the skyrocketing prices of storage chips in the AI wave. Jason Yu, Head of Product Strategy at Samsung Asset Management, commented, "The South Korean market is benefiting from government-led market revitalization policies, as well as strong earnings from industries such as semiconductors. In recent years, investors have been highly focused on the US market, but starting from the end of last year, the South Korean stock market has begun to meet investor expectations in terms of returns and investment themes."