When cryptocurrency exchange operator Bullish rang the bell at the New York Stock Exchange (NYSE) on Aug. 13, a 30-something South Korean investor living in Seoul, identified only by his surname Oh, stayed awake until dawn.
He put in staggered buy orders in $10 increments just to get a few more shares. His orders eventually filled at $70 a share. Still, that’s not bad, he says.
“With Peter Thiel, chairman of Palantir Technologies, behind the company, I expect the price to soar,” he said.
Oh is one of a growing number of retail investors, known in Korea as the Ants, who channel their savings into overseas equities – the group collectively known as “Seohak Ants” or Western Ants.
Some Korean pundits call their aggressive buying of foreign stocks the “Seohak Ants Movement” as opposed to the “Donghak Ants Movement,” a reference to the 19th-century Donghak Peasant Movement, a peasant revolt against rich and foreign invaders.
Analysts said those Seohak Ants are rushing into freshly listed US stocks, in particular.
Once concentrated on the likes of Tesla Inc. and Nvidia Corp., retail money is now chasing high-flying newcomers such as design software company Figma and stablecoin issuer Circle, post-IPO rallies of which have delivered returns of 100% or more in a matter of days.
IPO SHARES: HOT PICKS
According to the Korea Securities Depository, the most heavily bought overseas stock by Korean retail investors in the first half of August was Figma, which debuted on the NYSE on July 31. Korean investors purchased a net $165.7 million worth of the stock between Aug. 1 and 15.
Circle has also become a magnet for Korean cash.
Since its Nasdaq debut on June 5, Korean investors have bought a net $707 million worth of Circle shares, making it the most popular overseas stock among domestic retail buyers over the period.
Crypto miner Bitmain, known as the world’s top Ethereum shares owner and listed on June 6, attracted $356.8 million of net purchases from Koreans, ranking second among Seohak investors.
EXTRAORDINARY GAINS
Behind the rush is the potential for extraordinary gains.
Circle, priced at $31 at the IPO, closed at $149.26 on Friday, up 381% in just over two months.
Figma’s closing price on Friday was $79.42, more than double its $33 offer price.
AI datacenter operator CoreWeave, listed on the Nasdaq in March, has risen nearly 150%.
Even Bullish, which priced its IPO at $37, opened at $90 and briefly spiked to $118 on its first trading day before a circuit breaker halted trading.
“US equities are expensive, so retail investors see IPOs as a cheaper entry point,” said one asset management executive. “It’s similar to the frenzy over new apartment subscriptions after housing prices jumped.”
PAINFUL LOSSES POSSIBLE
But chasing early gains comes with hazards, analysts warn.
Prices can collapse just as suddenly when speculative flows reverse.
Figma, which closed at $115.5 on its first day and peaked at $124.63, has since slipped below $80.
More than 5,600 Korean Seohak investors who linked their accounts to Naver Pay reported an average loss of 20.45% as of Aug. 15.
Circle, too, has retreated from late June highs above $260, settling in the $140–150 range.
Analysts said the allure of IPOs reflects a shift in retail psychology, away from blue-chip tech giants and toward higher-risk bets with the promise of faster payoffs.
“The mentality is: buy early and ride the hype,” said a Seoul-based broker. “But the same volatility that brings big wins also traps many investors at the top.”
For Korea’s overseas retail investors, the new Wall Street mantra seems simple: act fast, or miss out. The question is how many will be left holding the bag when the fever cools, the broker said.
By Jiyoon Yang
yang@hankyung.com
In-Soo Nam edited this article.
