This Month, Over 60 Million Active Stock Trading Accounts... Era of Two Accounts Per Person

Funds Flood IPO Subscriptions Including LG Energy Solution
3.72 Million Shares Increased in One Month

Photo by Getty Images Bank

[Asia Economy Reporter Junho Hwang] The number of active stock trading accounts is set to surpass 60 million this month. This is the result of astronomical funds pouring into public offering subscriptions, including LG Energy Solution (LG EnSol), which set a record high. The era of one person holding two accounts is also expected to arrive soon.

According to the Korea Financial Investment Association on the 8th, as of the 4th, the number of active stock trading accounts reached 59,302,851. This means that 3,726,451 accounts (6.7%) were newly created in just over a month from 55,576,400 at the beginning of the year. Active accounts refer to accounts with more than 100,000 KRW and at least one transaction within six months, i.e., accounts where actual trading takes place.

Recently, the number of these accounts surged due to the LG Energy Solution subscription. Between the 17th and 18th of last month, when the subscription took place, 910,997 accounts were added, surpassing 58 million on the 18th, and exceeding 59 million within six trading days.

Most of the newly opened accounts appear to belong to 20-30-year-old stock beginners who have just started their social lives. KB Securities, the lead underwriter for LG EnSol’s listing, saw the average daily number of new account openings increase fourfold in December compared to the daily average before the LG EnSol subscription. About half of these were in their 20s (23%) and 30s (26%). Shinhan Investment Corp. also reported the highest proportion in their 20s (20%) and 30s (28.6%). KB Securities analyzed, "Public offering subscription investments are expanding their base as products that 20-30-year-old customers can easily invest in using small amounts of funds."

Surpassing 60 million accounts within this month is expected to be just a matter of time. With major IPOs scheduled after LG EnSol, the number of active accounts is anticipated to increase further. One Store, Hyundai Oilbank, Socar, SK Shieldus, and Kyobo Life Insurance have submitted listing applications to the Korea Exchange, while CJ Olive Young, SSG.com, and Market Kurly are also considering going public. Eugene Investment & Securities expects 11 to 13 IPOs to take place this month.

The arrival of the era of one person holding two stock accounts is also expected to accelerate. Considering South Korea’s population (Statistics Korea, future population projection) is 51,628,117, with 36,675,000 people aged 15 to 64 or older, the era of one person holding two accounts is not far off.

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