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Recent analysis reveals young investors favor foreign assets over local stocks

Published: 10 Feb. 2026, 12:43

Customers at a currency exchange in Jung District, central Seoul, are seen on Jan. 7. [NEWS1]

Younger investors are more inclined to put money into overseas assets than domestic stocks, according to recent analysis.

Investors in their 20s, in particular, allocated 60 percent of their total investment amount to overseas-listed exchange-traded products (ETPs), the highest overseas investment share among all age groups.

Individual investors held an average of 5.92 securities products per day, with domestic stocks accounting for 4.91, according to Kang So-hyun and Kim Min-ki, researchers at the Korea Capital Market Institute, in a report released on Monday.

By age group, the average number of domestic stocks held by retail investors rose from 3.12 among investors in their 20s to 4.3 in their 30s, 5.34 in their 40s and 5.41 in their 50s, before dipping slightly to 5.1 among those in their 60s. Domestic stocks made up 72.6 percent of holdings by count among investors in their 20s, compared to 90.9 percent among those in their 60s, indicating a clearer concentration in local names among older investors.

In contrast, investors in their 20s and 30s held relatively higher shares of overseas stocks and overseas ETPs. The tendency was even more pronounced when measured by amounts invested.

The average daily holding amount for all individual investors was about 51.96 million won ($35,600), with domestic stock holdings totaling 33.18 million won, or 63.9 percent of the total.

Among investors in their 20s, however, overseas ETP holdings accounted for 60 percent of total investment amounts, nearly double the share of domestic stocks at 30.8 percent. Investors in their 30s also allocated 45.5 percent of their total investment amounts to overseas ETPs.

A foreign currency exchange inside Incheon International Airport is seen on Jan. 19. [YONHAP]

The share of overseas ETPs declined with age: 23.7 percent in the 40s, 16.7 percent in the 50s and 12.8 percent in the 60s. Over the same age groups, the share of domestic stock investment rose to 64.6 percent, 71.6 percent and 77 percent, respectively.

By gender, women held more securities products on average than men — 6.38 versus 5.52 — suggesting a stronger tendency toward diversification. However, women’s share of domestic stocks was higher at 84.5 percent, compared to 81.6 percent for men, pointing to a stronger home-market tilt.

Women’s holdings consisted of 6.29 percent domestic ETPs, 4.69 percent overseas stocks and 0.73 percent overseas ETPs. Men held 7.5 percent domestic ETPs, 5.7 percent overseas stocks and 1 percent overseas ETPs. By amount, men held an average of 58.87 million won, about 30 percent more than women’s 44.1 million won.

By asset size, the number of holdings increased as assets grew. Investors with 5 million won or less held an average of 2.7 products per day, while those with more than 300 million won held 12.9 on average. For investors with 100 million won or less, domestic stocks accounted for 83 to 85 percent of holdings, but the share fell to 69.7 percent among those with more than 300 million won.

Measured by amounts invested, the share of domestic stocks was 62.3 percent among investors with 5 million won or less, compared to 43.4 percent among those with more than 300 million won.

A customer converts currencies at a foreign exchange counter in Myeong-dong in central Seoul on Jan. 26. [NEWS1]

On performance, the report said overall results, including both domestic and overseas assets, generally lagged stock market returns over the same period. While some investors participating in overseas markets saw improvements in portfolio returns and risk-adjusted performance, about half still posted unsatisfactory results.

Based on the findings, the report called for tailored financial education for young people and small-scale investors, as well as an expansion of digital risk-warning systems. It also urged greater use of long-term, diversified investment accounts and stronger tax incentives favoring long-term investing.

In addition, the report recommended tighter checks on the structure, disclosures and sales practices of high-risk products such as leveraged and inverse ETFs.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JEONG JAE-HONG [[email protected]]