Recent Acceleration in Retail Outflows in Korea

Korean retail equity outflows reached a record $7bn in late 2025, driven by structural shifts in retirement savings and a reduction in equity home bias. These flows have pressured the KRW but are expected to moderate as the Fed's easing cycle concludes in late 2026.

Key Takeaways

• 1.Retail equity outflows from Korea reached a record US$7bn in October 2025, driven by risk-on sentiment and structural shifts in retirement savings.
• 2.The foreign share of Korean household equity holdings has doubled to 20% over two years, mirroring Japan's levels.
• 3.The Fed easing cycle and rising retirement savings are primary drivers, with older investors (aged 50+) leading the recent outbound investment surge.

Table of Contents

• Background
• Fed Easing Cycle—A Cyclical Driver
• Increasing Retirement Savings alongside Greater Risk-Taking
• Falling Home Equity Bias
• Outlook for Household Equity Outflows
• Investment Implications

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