Donghak Gaemi Active Accounts Surpass 49 Million

Stock Trading Activity Accounts Surpass 49 Million
Driven by Market Rise and Mega IPOs
50 Million Accounts Expected as Early as Next Month

[Asia Economy Reporter Hwang Junho] The number of active stock trading accounts has surpassed 49 million. With a series of mega initial public offerings (IPOs) underway, it is expected that the 50 million mark could be reached as early as next month.

According to the Korea Financial Investment Association on the 26th, the number of active stock trading accounts reached 49,004,880 as of the 21st. This came just 31 trading days (43 calendar days) after surpassing 48 million in early May. The number of active stock trading accounts increased from 40 million on March 19 to 45 million within 28 trading days, but the growth rate slowed due to shaken investor sentiment toward risky assets amid rising interest rates.

However, with the KOSPI surpassing 3,300 and the KOSDAQ exceeding 1,000 last month, the interest of the so-called ‘Donghak Ants’ in the stock market has revived. Active accounts refer to securities accounts with a deposit asset of 100,000 KRW or more and at least one trade within six months. This typically reflects the level of interest of the Donghak Ants in the stock market.

The 50 million mark could be reached as early as next month. After breaking through 3,300, the KOSPI, which entered a consolidation phase, has now risen to 3,254. The KOSDAQ is also firmly holding the 1,000 level. An increase in active accounts is also expected due to individual investors opening new accounts aiming for the so-called ‘ttasang’ (a term referring to stocks that open at the IPO price and then double on the first day). Starting with KakaoBank, which has a market capitalization of 18.5 trillion KRW based on the public offering price, Krafton’s IPO worth 4 trillion KRW will take place early next month. Notably, Krafton allows multiple subscriptions.

Park Seokjung, a researcher at Shinhan Financial Investment, said, "Although uncertainties from the Delta variant threaten the stock market, the medium-term attractiveness of the market is expected to continue," adding, "Next month will be a turning point for the stock market, and despite concerns about the economic peak, confidence in recovery will be rebuilt."