Stock transactions in South Korea soared more than 70% in 2020 amid the investment craze among retail investors, data showed on Friday.

The value of stock transactions in Asia’s fourth-largest economy was 35,397.3 trillion won ($ 30.2 trillion) last year, up 70.5 percent from the previous year , according to data from the Financial Supervisory Service.

The year-on-year growth rate is well above the 6% increase recorded the previous year.

In the first six months of the year alone, stock transactions amounted to 19.465.5 trillion won, close to the figure for 2018. Given the current pace, the value of stock transactions is expected to rise. significantly exceed last year’s amount for all of 2021.

The drastic increase in stock transactions has been attributed to the intensive buying of local stocks by individual investors in a context of massive sell-off by foreign investors and local institutions.

The strong investor interest in stocks offered by large companies that debuted on the local stock exchange, according to market watchers, was also responsible.

Thanks to the explosive growth in stock transactions, local securities firms saw their fee income more than double last year.

Their combined fee income was 5.1 trillion won in 2020, up from 2.2 trillion won the year before. In the first three months of this year, their fee income reached 1.7 trillion won, according to the data. (Yonhap)

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