Asian Retail Trading Impact on US Meme Stocks: Beyond Meat Case Study

This analysis is based on recent reports highlighting South Korean retail investors’ growing influence on US meme stocks, particularly Beyond Meat (BYND) [1][2]. The phenomenon, dubbed the “Squid Game market,” represents a significant shift in global retail trading dynamics.

The surge in Korean retail investment in US markets has reached unprecedented levels, with holdings expanding from approximately $85 billion at the beginning of 2025 to $170 billion by October [1]. This dramatic growth accelerated in October 2025, with Korean investors making record net purchases of $6.85 billion in US stocks, exceeding South Korea’s entire trade surplus of $6.05 billion for the same period [2]. The cumulative year-to-date net purchases reached $26.96 billion by November 2025 [2].

Beyond Meat has emerged as a prime target for Korean retail speculation, with Korean investors net purchasing $239 million of BYND stock in October 2025 alone [1]. This investment coincided with extreme volatility in the stock, which experienced classic meme stock price surges followed by crashes during October [1]. The stock closed at $1.01 on November 13, 2025, reflecting ongoing fundamental challenges despite retail interest [0].

Korean retail investors, known as “Seohak ants,” exhibit distinctive high-risk trading patterns characterized by aggressive, leveraged strategies [1]. In domestic Korean markets, these retail traders account for over 50% of daily trading volume [1]. Their US stock purchases show significant concentration, with 80% of recent investments focused on just five AI beneficiary stocks: Meta, SOXL (3x semiconductor ETF), Nvidia, METU (2x Meta ETF), and Palantir [2].

The investment surge is driven by domestic economic pressures including wealth inequality and high property prices, forcing retail investors to seek “turnaround opportunities” in stock markets [1]. Advanced mobile trading platforms have made US stock access seamless for Korean investors, while the Korean won’s depreciation (nearly 5% over three months to 1,465.7 per dollar) may be encouraging continued dollar-denominated investment [1][2].

The Korean investment surge is creating significant currency pressures, with the won approaching the 1,500 level last seen during the 2008-2009 financial crisis [2]. Korean retail dollar demand for US stocks is creating sustained upward pressure on the USD/KRW exchange rate, potentially creating a self-reinforcing cycle of capital outflow and currency depreciation [2].

Analysts warn this phenomenon could fundamentally alter US market dynamics. Acadian Asset Management’s Owen Lamont cautions that the US market could become more like Korean markets - more volatile with harder-to-explain valuations [1]. The influx of speculative capital is “distorting valuation systems” and expanding the size and volatility of US speculative sectors [1].

The convergence of Korean high-leverage trading with existing US meme stock volatility creates amplified market swings that could exceed historical patterns [1]. This cross-border speculative activity represents a structural shift in global retail investment patterns that may persist beyond current market conditions.

Beyond Meat’s financial metrics reveal significant fundamental challenges despite continued retail interest. The company has a negative P/E ratio of -0.32, indicating ongoing losses, and 57.1% of analysts rate the stock as “Sell” with a consensus price target of $25.00 [0]. The stock has declined 99.19% over five years, reflecting severe business challenges [0].

The Korean retail influence raises questions about market efficiency and price discovery mechanisms. The concentration of Korean investments in specific high-volatility stocks suggests that price movements may be driven more by speculative flows than fundamental business performance [1][2].

1. Systemic Volatility Risk
   : The combination of Korean high-leverage trading with US meme stock volatility could create amplified market swings that exceed historical patterns [1]

2. Currency Feedback Loop
   : Continued Korean investment in US stocks may further weaken the won, potentially creating a self-reinforcing cycle of capital outflow and currency depreciation [2]

3. Valuation Disconnect
   : The influx of speculative capital from Korean retail traders could further disconnect meme stock prices from fundamental business metrics, as evidenced by BYND’s 99% decline over 5 years despite continued retail interest [0][1]

4. Regulatory Intervention Risk
   : Both Korean and US authorities may intervene if cross-border capital flows threaten market stability or currency stability [2]

1. Korean Regulatory Actions
   : Monitor Bank of Korea and Financial Services Commission statements regarding overseas investment flows [2]
2. US SEC Oversight
   : Watch for increased scrutiny of foreign retail participation in US meme stocks
3. Currency Intervention
   : Track potential Korean central bank intervention in foreign exchange markets [2]
4. Brokerage Platform Changes
   : Monitor Korean brokerage firms’ policies regarding US stock access and leverage limits

The “Squid Game market” phenomenon represents a significant evolution in global retail trading, with South Korean investors now wielding substantial influence over US meme stocks. Beyond Meat serves as a case study, where $239 million in Korean October purchases [1] coincided with extreme volatility despite the company’s fundamental challenges [0]. The Korean won’s depreciation to 1,465.7 per dollar [2] and the record $170 billion in US stock holdings [1] suggest this trend may continue, potentially reshaping US market dynamics toward higher volatility and valuation complexity. Decision-makers should monitor regulatory responses and currency developments as indicators of potential market structure changes.