"Asset Management Firm Deposits Soar by 99.6 Trillion Won in April amid Stock Market Boom, Marking All-Time High"

Assets Under Management Surge by 99.6 Trillion Won, Marking All-Time High
Domestic and Global Stock Prices Soar
Equity Funds See Record Increase of 55.7 Trillion Won

Last month, the increase in assets under management at asset management companies approached 100 trillion won, marking an all-time high. This surge was driven by a sharp rise in equity funds amid a bullish domestic stock market, with the KOSPI index climbing more than 20% in April alone.

On the 15th, Samsung Electronics' stock price was displayed on the electronic board at Hana Bank's dealing room in Jung-gu, Seoul.

According to the "Financial Market Trends in April 2026" report released by the Bank of Korea on the 17th, assets under management at asset management companies rose by 99.6 trillion won in April, primarily led by equity funds and money market funds (MMFs). This is the largest monthly increase since the statistics began in 2004, far surpassing not only last year’s annual increase, but also the previous record high of 91.9 trillion won set in January, which had also seen explosive growth.

This was largely due to a record increase of 55.7 trillion won in equity funds. Park Mincheol, head of the Market Operations Team at the Bank of Korea’s Financial Markets Department, explained, “The main driver was a significant increase in valuation gains due to sharp rises in domestic and overseas stock prices,” and added, “New investment inflows have also continued.” Bond funds (up 3.6 trillion won) and other funds (up 12.9 trillion won) also switched to increases. MMFs surged by 24.5 trillion won, also reversing to an increase. This is attributed to factors such as the reinflow of corporate funds that had been withdrawn at the end of the quarter for financial ratio management, leading to a significant turnaround in growth.

In April, bank deposits declined by 6.8 trillion won, mainly due to decreases in demand deposits. Demand deposits fell by 18.8 trillion won, turning to a decrease as corporate funds flowed out for purposes such as value-added tax payments and dividend payouts. Time deposits, on the other hand, increased by 4.7 trillion won as some banks attracted corporate funds to secure lending resources and manage regulatory ratios.

A view of apartments from Lotte World Tower in Songpa-gu, Seoul. Photo by Yonhap News Agency

In April, household loans from banks rose by 2.1 trillion won, with the increase driven mainly by housing-related loans. Housing mortgage loans grew by 2.7 trillion won. After remaining below the 1 trillion won mark since November last year, the increase expanded in April. Despite weakening demand for Jeonse loans, the increase is attributed to higher housing transaction volumes and greater demand for interim payments since the start of the year. Other loans decreased by 600 billion won, mainly due to loan repayments following individuals’ net sales of stocks.

However, the scale of the increase is not considered worrisome. Park emphasized, “Looking at total household loans, including those from non-bank institutions, the monthly increase was in the mid-3 trillion won range, similar to the previous month,” and added, “Overall, the growth rate remains low and is well within the government’s target for aggregate household debt.”

It is assessed that, while there is little risk of a sharp increase in household loans going forward due to ongoing financial sector controls, close attention should be paid to movements in the Seoul metropolitan area housing market. Park noted, “With the end of the capital gains tax exemption for multiple homeowners in the metropolitan area approaching, the market has absorbed related properties, leading to both price increases and higher transaction volumes. While household loans are likely to continue their natural upward trend as financial sector controls are strengthened, it remains to be seen whether the market will move toward sustained stability given the lingering instability factors in the metropolitan housing market.”

In April, corporate loans from banks grew by 10.7 trillion won, with the increase widening compared to the previous month. SME loans (up 5.7 trillion won) saw their increase expand as major banks continued their corporate lending operations and additional funding demand arose around April 27 for value-added tax payments. Large corporate loans (up 5 trillion won) increased due to the refinancing of temporary repayments at the end of the quarter, demand for dividend payments, and company bond redemptions.

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