Samsung Securities, First in Industry to Surpass 200 Trillion KRW in WM Deposited Assets

WM assets of 200 trillion won approach the average deposits of commercial banks at around 250 trillion won
New inflow assets of 18 trillion won this year reflect the fever for seeking returns amid ultra-low interest rates
The proportion of stocks in inflow assets exceeds half... bonds, trusts, and derivative-linked securities also increase beyond stocks

[Asia Economy Reporter Song Hwajeong] Samsung Securities announced on the 10th that it is the first in the securities industry to surpass 200 trillion KRW in retail (WM) entrusted assets.

WM entrusted assets refer to customers' assets such as stocks, bonds, and Comprehensive Asset Management Accounts (CMA) managed by the retail division responsible for individual clients.

As of the 9th, Samsung Securities' WM entrusted assets reached 203.7 trillion KRW. The 200 trillion KRW in WM entrusted assets is close to the average deposits of 250 trillion KRW held by the four major commercial banks as of the first quarter of 2020. This is the result of a steady inflow of about 10 trillion KRW in assets annually over the past 10 years since Samsung Securities surpassed 100 trillion KRW in WM entrusted assets in 2010. In particular, this year, a massive inflow of 18 trillion KRW in just five months contributed significantly to advancing the timing of reaching 200 trillion KRW.

Despite increased stock market volatility due to the novel coronavirus disease (COVID-19) this year, the massive inflow of funds is analyzed as a result of investors actively seeking returns above market interest rates through stocks and bonds in the era of ultra-low interest rates near 0%. An analysis of the 18 trillion KRW newly inflowed this year by Samsung Securities showed that the proportion of stock investments accounted for a substantial 59.5%, clearly reflecting the impact of the 'Donghak Ant Movement'.

The proportion of customers investing not only in domestic stocks but also in overseas stocks increased from 2.8% last year to 6.6% this year, showing a trend of expanding the search for growth stocks into overseas markets.

Analyzing the stocks they invested in, Samsung Electronics, Kakao, and Samsung SDI were the most purchased domestic stocks, while Alphabet A (Google), Microsoft, and Tesla were the top overseas stocks, indicating that investments were generally focused on blue-chip stocks. In addition to stocks, funds amounting to about 90% of last year's total flowed into bonds, trusts, and derivative-linked securities over the past five months, confirming an evolution from the stock-centric 'Donghak Ants' to 'portfolio ants' seeking stable investment returns through diversified assets.

Along with this, more than 2,500 investors have been steadily joining daily this year, with 257,000 new customers added by the end of May. This exceeds last year's total new customer inflow of 200,000 by more than 50,000.

Additionally, the investment activities of corporations seeking alternatives in the low-interest-rate era were notable. This year, about 800 new corporate accounts were opened, bringing the total number of corporate accounts managed by the retail division close to 50,000.

Examining the characteristics of newly inflowed individual customers, the dominance of non-face-to-face channels driven by the untact (contactless) trend was prominent. Of the new customers, 231,000, or 90%, started trading through non-face-to-face channels, and a survey showed that more than half of them, 60.5%, responded that they had 'no prior experience using securities firms,' reflecting the 'money move' phenomenon disappointed by ultra-low interest rates.

By age group, the proportions of customers in their 20s and those aged 50 and above, which accounted for 22.9% and 19.8% respectively among new customers over the past two years, increased to 26.5% and 24.3% this year, respectively. This is analyzed as a result of the simultaneous notable inflow of young investors in their 20s driven by the untact boom and the movements of affluent middle-aged investors in their 50s seeking improved profitability.

Sa Jae-hoon, Vice President and Head of Samsung Securities' Retail Division, said, "Achieving the meaningful milestone of 200 trillion KRW in retail assets for the first time in the securities industry and leading the money move was possible thanks to our customers who consistently trusted Samsung Securities' expertise amid various environmental changes such as rapidly changing market trends and digitalization driven by IT development." He added, "We will do our best to become the best partner contributing to our customers' better lives by providing deeper investment information and convenient customized asset management services tailored to their diverse needs."

This content was produced with the assistance of AI translation services.