South Korean Investors Shift $657M from Tesla to Crypto Assets Amid Market Pivot

South Korean retail investors liquidated a net $657 million in Tesla shares during August—the largest monthly outflow since early 2023—as capital migrated toward high-volatility crypto proxies. The exodus reflects eroding confidence in Elon Musk’s automaker among its once-loyal global retail base, with Bloomberg data showing $253 million flooding into crypto-linked equities like Bitmine Immersion Technologies.

Korean appetite for U.S. tech stocks has collapsed, dwindling from a January-April monthly average of $1.68 billion to just $260 million by July. Crypto-related equities now command 31.4% of individual investor portfolios, up from 8.5% in January, despite recent domestic market outperformance. Over 10,000 Korean traders hold crypto assets exceeding 1 billion won ($750,000), predominantly millennials and Gen Z investors.

The rotation coincides with Seoul’s aggressive digital asset agenda. President Lee Jae-myung has elevated crypto ecosystem development to a national priority under Korea’s five-year economic plan, signaling institutional validation for the asset class.