New Delhi, Aug. 19 -- South Korean retail investors seem to be losing confidence in their home market and are increasingly looking to US stocks instead. Many sold domestic shares for most of last week, even as the benchmark index entered a bull market.

"But, the interesting part is these investors are not necessarily reducing risk, but they are shifting where they take that risk," Paresh N. Bhagat, MD & Chairperson of Mangal Keshav Financial Services.

South Korean investors bought a net $4.5 billion in US stocks in July, but their preference remains for technology, semiconductors, and leveraged products rather than a purely diversified US exposure. For example, about $840 million went into SK Hynix's US-listed depositary receipts, even ...