At 9 a.m. on the 15th, when the KOSPI index topped 8,000 points for the first time ever, a wealth management center at a major securities firm in Gangnam, Seoul, was packed with waiting customers from the entrance. The number waiting shown on the ticket machine was 7. An employee at the firm said, "It usually gets crowded on days with initial public offering subscriptions, but with the KOSPI index nearing 8,000, many customers are visiting."
Most of the waiting customers were looking at their smartphones to check the stock price trend. One investor sitting at a table waiting for a turn muttered, "Why isn't the order getting filled?" and grew anxious. With buying pressure piling in, it seemed difficult to buy shares in certain names.
Another large branch of a securities firm in Yeouido, Seoul, also saw many customers arriving early in the morning. The phones at employees' desks rang constantly. There were many inquiries from customers asking how much further Samsung Electronics and SK hynix might rise, as well as requests to reactivate dormant accounts where transactions had not taken place for a long time and to open new accounts.
After the KOSPI index broke through 5,000 points for the first time early this year and then surpassed 6,000, 7,000, and 8,000 in succession, household funds are pouring into the stock market.
KB Securities estimated that from January last year to February this year, more than 140 trillion won in individual funds moved into the stock market through direct investing, customer deposits, and cash management accounts (CMA). In particular, it analyzed that, due to the government's strengthened regulations on the housing market, proceeds from home sales have been flowing into the stock market at a greater pace since the second half of last year.
This year (Jan. 2–May 15), the amount individuals net bought in the Korea Exchange's main board exceeded 40 trillion won. The net purchases through financial investment accounts, which track the flow of funds for exchange-traded funds (ETF) actively traded by institutions as well as individuals, also neared 45 trillion won over the same period.
The "MoneyMove" into the stock market that gathered pace since last year is expected to accelerate further. According to the Korea Financial Investment Association, investor deposits stood at a record 138 trillion won as of the 13th. Investor deposits, meaning money customers have left in securities firm accounts and known as stock market standby funds, tend to grow as investor sentiment improves.