The domestic public fund sales balance has surpassed 300 trillion won for the first time.
The Korea Financial Investment Association noted on the 1st that the sales balance of public funds recorded 300 trillion 5039 billion won as of the end of July.
The fund sales balance refers to the scale of funds sold through financial companies' branch offices, bank branches, and internet homepages. Funds traded in the listed market (such as exchange-traded funds, real estate funds, and special asset funds) are excluded.
Public funds are funds that anyone in the general public can join, and the sales balance has increased by 67 trillion 5000 billion won over the year, a rise of approximately 29.0% compared to the end of last year.
By fund type, short-term financial funds (MMF) accounted for approximately 166 trillion 9000 billion won, representing 55.5% of the total public fund sales balance. Bond-type funds (50 trillion 4000 billion won) and equity funds (28 trillion won) followed.
Among financial companies that sold public funds, securities firms recorded approximately 195 trillion 4000 billion won, making up 65.0% of the sales balance. Banks recorded 93 trillion 8000 billion won (31.3%) and insurance companies recorded 3 trillion 9000 billion won (1.3%).
By customer type, financial institutions and corporations accounted for approximately 166 trillion 6000 billion won due to the impact of retirement pensions and corporate MMFs, making up the largest share (55.4%). This was followed by individuals at 78 trillion 7000 billion won (26.2%) and general corporations at 55 trillion 2000 billion won (18.4%).
For individual investors, MMFs accounted for approximately 19 trillion 8000 billion won, making up the largest share (25.1%), but equity funds also showed a similar scale at 19 trillion 5000 billion won (24.8%).
Including the sales balance of private funds (692 trillion 7409 billion won), the total sales balance recorded 993 trillion 2448 billion won.
The number of public fund accounts is approximately 35.71 million, higher than private funds (around 90,000). The scale is reportedly setting new records every month, according to the Korea Financial Investment Association.
Lee Hwan-tae, Deputy Minister of the Korea Financial Investment Association, said, "Public funds are gaining attention due to the favorable domestic and international stock markets and expectations for government-friendly capital market policies," adding that "the activation of capital markets such as public funds will promote capital supply to corporations and lead to enhanced productive finance."
Meanwhile, the total fund market size in Korea, including exchange-traded funds (ETFs), was recorded at approximately 1290 trillion won based on the net worth (NAV) at the end of July (public funds 569 trillion won, private funds 721 trillion won).