Korea Renaissance: Is the Household Asset Move to Equities Sustainable? Possibly

研报英文原文证据摘录

Korea Renaissance: Is the Household Asset Move to Equities Sustainable? Possibly

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Stronger Appetite for Retail Equity Investment in Korea vs. Japan

Retail investor stock ownership: Despite an earlier start on market reforms with the new NISA in 2024, Japan's retail

participation share has risen, but from a low base. Its individual investors accounted for 25% of trading value in 2025, the

highest level in over a decade, but they made up only 17% of market ownership. Meanwhile in Korea, retail traders

historically made up about 42-45% of total domestic exchange turnover, and the retail investor base has more than doubled

in five years, to 14.2mn in 2024 from 6.9mn in 2019, or nearly half of the adult population (above age 15).

Intensity of retail participation: This growth has led retail transaction volumes to surge in Korea. In 2026, retail investors

have been the largest net buyers in the Korean market, with approximately US$15bn in inflows. On the other hand,

Japanese retail investors have been net sellers of domestic stocks in 2025-26, offloading JPY3.8tn, despite a significant

rally in Japanese equities. We think this contrarian behavior is indicative of the conservative nature of the domestic market

in Japan.

More resources in Korea? Korean investors have significant cash in brokerage accounts, reaching W132tn this year, a

record high. We believe this could be invested in equities. Margin lending balances have also continued to trend higher,

indicating rising risk appetite. As of June 2026, customer deposits were up 60% to W132tn, and margin lending balances up

70% to W37.7tn, compared to August 2025.

Source: Morgan Stanley Research