Individuals Hold More Stocks Than Corporate Investors

  • By Kim Hyo-in

    January 08, 2021 12:41

    Individual investors in Korea held W852.6 trillion worth of stocks as of September, surpassing corporate investors excluding banks by W22 trillion, the Bank of Korea said Thursday (US$1=W1,091).

    The last time individuals owned more stocks than corporate investors was in 2009, when businesses dumped shares to secure cash in the aftermath of the global financial crisis.

    The gap in stock holdings by individual and corporate investors widened from W3 trillion in June 2020 to seven times more by September.

    The amount invested by households in the third quarter of last year totaled W30.7 trillion, the highest since the BOK began tallying such figures in 2009. But corporations invested only W2.8 trillion in stocks, down from W6.27 trillion the previous quarter.

    Many investors borrowed heavily. Due to their increased borrowing for stock investment and apartment purchases, their surplus cash declined from W64 trillion in the second quarter to W30.7 trillion in the third. Households borrowed W55.2 trillion in the third quarter, of which W52.6 trillion was bank loans.

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