The exodus from domestic equities continued as trading volume on Korean exchanges dropped to 635.25 billion shares in 2024, down from 730.38 billion shares the previous year, the data showed.
The retreat from domestic markets marks a sharp reversal from the retail trading boom during the COVID-19 pandemic, with domestic trading volume now around half of its 2021 peak of 1.23 trillion shares.
By contrast, overseas stock trading volume soared to 156.42 billion shares in 2024, marking the second consecutive year of strong growth after an 89.6 percent surge in 2022.
The shift has significantly impacted brokerages’ revenue streams, with foreign exchange commission income doubling to 269.66 billion won ($186.6 million) in 2024 from the previous year.
The mass migration comes despite government efforts to bolster domestic market valuations, as South Korea’s benchmark KOSPI index fell 9.43 percent in 2024 while major global indices steadily advanced.
The S&P 500 and Nasdaq surged 26.58 percent and 33.37 percent, respectively, over the same period, while Japan’s Nikkei 225 climbed 20.37 percent.
Market analysts attribute the investor flight to persistent corporate governance concerns.
Copyright ⓒ Aju Press All rights reserved.
