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The Ants Come Marching

When Bullish clanged the NYSE bell on Aug. 13, a South Korean investor, Mr. Oh, pulled an all-nighter in Seoul. He set up staggered buy orders of $10 increments, securing shares at $70 each. “With Peter Thiel backing it, I expect the price to soar,” he said. Sounds confident, right?

South Korea’s Seohak Ants: The New Wave

Oh is just one soldier among the legions of retail investors known locally as Ants. These folks are diving into overseas equities like never before. Dubbed the “Seohak Ants,” or Western Ants, they’re making Wall Street their playground. According to KED Global, this movement is reminiscent of historical uprisings – an economic revolution, if you will.

IPO Fever: The New Hot Stocks

Korean analysts report the Ants are jumping into newly-listed US stocks. They’re chasing the likes of Figma and Circle, where post-IPO rallies have seen gains of over 100% in mere days. Figma, making waves since its July NYSE debut, saw Korean investors snagging $165.7 million of shares.

The big kahuna? Circle. Since its splashy Nasdaq entry, Korean retail investors have poured in cash, making Circle their top overseas pick.

Extraordinary Gains, Or a Bubble Bursting?

The rush isn’t without reason. Circle, starting at $31, closed at $149.26 recently, marking a 381% uptick. Meanwhile, Figma more than doubled its debut price, closing at $79.42. Check the numbers, and you’d think the sky’s the limit. But hold on—prices can nosedive, too.

The Dark Side: Risks Lurk Behind Gains

With high risk comes volatility. It’s like betting big in Vegas. Case in point: Figma hit $115.50 on its debut but has since tumbled below $80. And then there’s Circle, tumbling from its June highs. Thousands of investors could find themselves in the red.

A Changing Investment Psychology

The Ants’ frenetic activity reflects an investment shift. Investors are moving from safe blue-chips to risky IPOs, tempted by quick returns. “Buy early, ride the wave,” said a Seoul-based broker. Yet, the same rollercoaster could leave many stranded at the top. It’s a gamble, and many might end up holding worthless stock, wondering where it all went wrong.

The street strategy of these Seohak Ants appears straightforward: act fast or miss out. But when the dust settles, who risks being left with just the bag? Only time will tell.

Write to Jiyoon Yang at yang@hankyung.com. In-Soo Nam edited this piece.