Perspectives on South Korean Overseas Investments
Economy & Capital Market Summary
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Korea's total financial assets have steadily
increased alongside the country's economic
development.
Among Korea's financial sectors, the banking
industry has the largest amount of total assets
and equity capital.
Asset management companies are increasing
in number as 27 new firms were established in
2018, driven by the increase in number of
hedge funds.
Non-financial assets, including real estate,
accounted for 62.4% of household assets in
2018. This is shrinking as financial assets are
on the rise.
Foreign ownership of the Korean stock market
comprised of 32.1% of total market
capitalization, where foreign ownership of
bonds only made up 6.6%.
Size of the Capital Market in Korea
Annual Financial Asset Volume
Market cap
(KRW tn)
| Outstanding balance of bond issues
(KRW tn)
2,200
20,000
Cash/Deposits
Investment funds
Loans
Equities Bonds
Insurance/Pensions
Others
2,000
1,751
1,8891,830
1,906
18,000
1,800
1,702
1,590
16,000
1,600
1,444
1,510
1,572
14,000
1,400
1,335
12,000
1,200
1,000
10,000
800
8,000
600
6,000
400
4,000
200
2,000
0
0
2014
2015
2016
2017
2018
2010 2011 2012 2013 2014 2015 2016 2017 2018
Size of Financial Sectors
Category
Banking
Life
Insurance
Non-life
Insurance
Credit Card
Securities
Units: KRW tn, %
Asset
Management
19
24
32
8
57
242
# of
Companies
Total Assets
2,921.5
847.6
277
113.9
439.2
7.7
Equity Capital
197.8
71.4
35.2
26.5
56.6
6.1
Net Profit
11.9
4.1
3.9
2.2
4.1
0.6
ROE
6
5.7
11.4
5
7.2
9.8
☑
DARC
MATTER
Sources: KOFIA 2019 Annual Review
Exchange Rate: 1 USD = 1,180 South Korean Won
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