Shinhan Financial Investment's Retail Bond Sales Amount More Than Doubles Year-on-Year... Surpasses 10 Trillion Won

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Shinhan Financial Investment announced on the 29th that as of August this year, the total retail bond sales amount increased by about 160% compared to the previous year, showing the largest growth among domestic securities firms.

Shinhan Financial Investment stated that the sales amount of Korean won bonds, centered on financial bonds such as card bonds and capital bonds that began full-scale sales last month, exceeded 600 billion KRW in just two months, indicating that retail customers' funds are flowing into bond investments. Among the 600 billion KRW sold online and offline over two months, individual investors accounted for 80%. Short-term bonds, a short-term interest rate product, also showed steady growth since the beginning of the year, recording cumulative sales of 9 trillion KRW, a 2.5-fold increase compared to the same period last year.

Shinhan Financial Investment said that in an investment environment with increased volatility, high-quality corporate bonds with an AA rating, which can receive fixed interest if held until maturity, have become more attractive due to rising interest rates. Accordingly, bonds with a maturity of less than two years and financial bonds rated AA or higher were mainly sold, with bonds such as KB Kookmin Card 45 billion KRW, Hyundai Card 60 billion KRW, and Hyundai Capital 20 billion KRW all sold out within a week at the beginning of this month. As of mid-month, the total retail bond sales amount exceeded 10 trillion KRW.

Additionally, it was identified that the increase in sales volume was driven by enhancing investment convenience for individual investors by selling various bond products such as general over-the-counter bonds, contingent capital securities, short-term bonds, U.S. Treasury bonds, and Brazilian government bonds through the Shinhan Alpha application (app).

Kim Ki-dong, Head of FICC Sales Division at Shinhan Financial Investment, said, "As part of RE:BOOT, which declares the name change to Shinhan Investment Corp. effective October 1 and aims to start everything anew, we are accelerating full-scale comprehensive asset management sales," adding, "Compared to other financial products, bonds with less volatility and increased interest receipt attractiveness due to rising interest rates are emerging as a major financial management tool for customers."

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