Overseas Equity Funds Also Enter the '100 Trillion Won Era' Following Domestic Funds

The Korea Financial Investment Association announced on the 29th that, as of the 24th, the size of domestic equity funds had surpassed 110 trillion won. This comes just over 20 days after domestic equity funds exceeded 100 trillion won for the first time ever on the 2nd, with an increase of more than 10 trillion won in that period.

On the 22nd, overseas equity funds also exceeded 100 trillion won, marking the first time that both domestic and overseas equity funds have reached triple-digit trillion-won levels.

As of the 24th, the sizes of domestic and overseas equity funds stood at 110 trillion won and 101 trillion won, respectively, representing increases of 64% and 63% compared to the end of October last year. Compared to the end of May, when the domestic market began to rise in earnest, domestic equity funds increased by 48%, and overseas equity funds by more than 29%.

Unlike real estate funds, which are centered around private equity funds, public equity funds-where the general public invests-make up the majority of equity funds. This is seen as an indicator that the investment preferences of the public are shifting toward productive sectors such as the domestic stock market and expanding into global diversification.

Lee Changhwa, Head of Asset Management and Real Estate at the Korea Financial Investment Association, stated, "The fact that domestic equity funds have surpassed 100 trillion won is a significant milestone that demonstrates both the qualitative and quantitative growth of our fund and stock markets." He added, "Given that the yield on retirement pensions, which amount to approximately 430 trillion won, is currently 2 to 3%, expanding retirement pension investments into funds could greatly contribute to enhancing investment returns for the public, thereby aiding both wealth accumulation and retirement preparation."

Lee further emphasized, "We will enhance the appeal of public funds by innovating fund structures, such as introducing the listed class, and establish various institutional foundations to boost investor confidence and promote a culture of long-term investment." He added, "We plan to actively support the fund industry so that it can further solidify its position as a key investment product for the public and contribute to the expansion of productive finance."

The "listed class," which combines the advantages of traditional funds and ETFs, began trading on the Korea Exchange on the 27th. This is expected to significantly improve investment accessibility to public funds for both retail and pension investors.