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Escape from Korea is smart enough to sell Samsung Electronics and buy a Tesla… Eui-Myeong Park’s Fire Ant Rescue Team

Elon Musk, CEO of Tesla, an American electric vehicle company. /Photo = Yonhap News (REUTERS)

Last year, the KOSPI index surged 31%, giving ants a great profit. However, this year, the US stock market is falling without a bottom despite breaking new record highs. Among the ants, there is even a saying, “Escape from the chief of staff is intelligent.”

On the stock bulletin board, ‘certification articles’ comparing US and domestic stock accounts are being posted. The main point is that domestic stocks have ruined overall returns. One individual investor said, “The director put 70 million won and lost 20 million won, but in the United States, it is already 8 million won out of 13 million won.” A Samsung Electronics shareholder said, “I moved to the United States because I was angry with the director.”

They are not exaggerating. While the KOSPI rose 0.81% this year, the S&P 500 surged 23.7% (as of the 2nd day below). The Nasdaq rose 21.1%, 10 times higher than the KOSDAQ (2.1%). The Dow, which focuses on traditional manufacturing, also rose 14.61%.

Photo = Naver Cafe capture

Photo = Naver Cafe capture

When looking at individual stocks, the difference is even greater. Tesla, the number one investor in Korea, surged 49% this year. Apple in second place rose 26.5% and Nvidia in third place rose 145%. Alphabet and Microsoft, ranked 4th and 5th, also rose 66% and 51% respectively.

Domestic stocks are miserable. Samsung Electronics, the No. 1 national shareholder, fell 9% this year. Compared to the intra-day high of January (96,800 won), the loss is close to 20%. Kakao, which received attention as the ‘second national stock’, also fell by nearly 30% from its peak.

Celltrion, Seegene, and HMM, which are called ‘standard items’ of ants, were cut in half. These stocks fell many times more when the market fell. In terms of net buying stocks, the results show that few ants have made a profit this year.

Some ants blamed short selling. It is said that as the ban on short selling was lifted in May, the ants were in an environment where they could not make money. But experts emphasize that there is a more fundamental cause.

photo = blind capture

photo = blind capture

The biggest culprit is the corporate environment. The United States has produced innovative companies that lead the global economy whenever the paradigm of the industry changes. These companies have been listed on the US stock exchange and have contributed to the upward movement of the US stock index.

Retirement pensions, which support the US stock market, are also a big boost. Most of the U.S. retirement pension funds are invested in the U.S. stock market. It’s worth thousands of dollars. This is in contrast to domestic retirement pensions, where 90% of retirement pensions go into savings and savings accounts. An official from the securities industry said, “Most of the retirement funds in the United States are in stocks, so boosting the stock market in the United States has no choice but to be the top priority.”

Improving shareholder value also plays a major role. A stock repurchase is a typical example. By July of this year, companies listed on the S&P 500 purchased a total of $683 billion (about 800 trillion won) of treasury stock. It is equivalent to twice the market cap of Samsung Electronics.

Apple has announced that it will buy back $90 billion of treasury stock this year. More than half of its annual net income. Alphabet is also planning to purchase 50 billion dollars (59 trillion won). Even considering the size of the company, it cannot be compared with domestic companies.

That being said, the ants are willing to choose US stocks even if they pay a 22% tax. That is why domestic stocks are frustrating. Unlike domestic stocks, foreign stocks are subject to a 22% tax on capital gains exceeding 2.5 million won.

Dealing with the news of the Yeouido stock market and the stories of ants <불개미 구조대>is serialized every Saturday. By subscribing to the press page below, you can receive articles without missing out.

By Park Eui-myeong, staff reporter [email protected]

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