Banks Vs. Securities Firms
With the size of the domestic fund market keeping the highest level, the share of securities firms in the market has surpassed that of banks.
According to the Korea Financial Investment Association (KOFIA) on August 10, the domestic initial public offering (IPO) and private equity fund markets were worth 459.6 trillion won (US$402.45 billion) as of the end of June. The figure slightly decreased after reaching a record high of 471.9 trillion won (US$413.22 billion) at the end of May but it still keeps the highest level, nearing 500 trillion won (US$437.83 billion). The funds’ net assets are the total amount that people have given them to invest plus the appreciation on the value of the assets (stocks) that they have purchased. The size of net assets grew due to the rise in the stock market this year. The total net assets of funds amounted to 433 trillion won (US$379.16 billion) at the end of January last year when the KOSPI couldn’t break out of the box pattern.
In particular, the sales volume of funds at securities firms grew. The sales of IPO and private equity funds at securities companies reached a record high of 331.7 trillion won (US$290.46 billion) at the end of April and have maintained at the 320 trillion won (US$280.21 billion) for three months in a row. Their market share also rebounded to the 70 percent level at the end of April for the first time in 12 years and stood at 69.9 percent, or 321.1 trillion won (US$281.17 billion), as of the end of June.
On the other hand, the sales of funds at banks dropped from 100 trillion won (US$87.57 billion) at the end of January to 99.46 trillion won (US$87.09 billion). Their market share stood at 21.6 percent at the end of June.
By financial company, Korea Investment & Securities ranked first in terms of fund sales with 52.98 trillion won (US$47.27 billion), followed by Shinhan Investment Corp. with 37.43 trillion won (US$32.78 billion), Mirae Asset Daewoo with 37.42 trillion won (US$32.77 billion), KB Kookmin Bank with 19.1 trillion won (US$16.72 billion) and NH Investment & Securities with 17.57 trillion won (US$15.38 billion). However, Mirae Asset Daewoo ranked on the top spot in terms of equity fund sales alone with 6.45 trillion won (US$5.65 billion).