'KOSPI 3000' is becoming a new normal, and expectations are growing about whether the 'Donghak Ant Movement,' which once spectacularly led the domestic stock market, will make a comeback.
First, the deposit, which is the money that individual investors can quickly use for stock investment, is rapidly increasing. The deposits of investors, which are standby funds for the stock market, surpassed 70 trillion won earlier this month. Although it has slightly stagnated around 60 trillion won due to increases in the U.S. stock market, it remains at a high level.
Hur Je-hwan, a researcher at Eugene Securities, noted, "The speed of increase in deposits is as fast as during the peak of the Donghak Ant Movement in 2020-2021."
Kim Jae-seung, a researcher at Hyundai Motor Securities, also analyzed, "As of the 3rd, deposits recorded 66 trillion won, the highest since April 2022," adding, "Expectations for the return of the Donghak Ant Movement are growing in line with the passage of the Commercial Act amendment in the National Assembly."
However, unlike in the past during the Donghak Ant Movement, individual investors do not seem to be actively buying yet. Researcher Hur stated, "The buying force of individual investors is not active, and I expect that their funds will gradually flow in when the stock prices stagnate."
Researcher Kim also analyzed, "The full-fledged entry of individual investors into the stock market is not yet confirmed," and added that this bullish market is entirely led by net buying from foreigners. He emphasized that individual investor buying is essential for a strong KOSPI market like that of 2021.
To regain its past glory, the KOSPI market needs not to stop at the passage of the Commercial Act amendment but require more legislation and tax reforms aimed at improving the capital market.
Researcher Kim said, "For individual investors to return to the domestic stock market, trust is essential," and added, "We should pay attention from a long-term perspective to the passage of bills such as the introduction of a cumulative voting system and expansion of separate election audit committee members, as well as separation of dividends for tax purposes, inheritance tax amendments, and mandatory retirement of treasury stocks, as well as how the judiciary will rule on the revised Commercial Act."
Kim Soo-hyun, a researcher at DS Securities, explained, "If this Commercial Act amendment is a mechanism for the protection of minority shareholders and improvement of governance structure, it is necessary to rationally ease the inheritance and gift tax system, introduce separate taxation for dividends, and provide specific guidelines on the handling of treasury stocks to activate the capital market."