Korean Households’ Net Fund Operations Hit Record High: Surge in Fund Investment and Shift to Indirect Investments
Last year, the net fund operation by Korean households reached a record high of 269.7 trillion won. According to data released by the Bank of Korea, fund investments—including ETFs—soared by over 150% compared to the previous year, signaling a significant shift from direct stock investments to indirect fund-based investments. Households liquidated 15 trillion won in domestic stocks but invested a record 75.5 trillion won into various investment funds, particularly ETFs, reflecting changing investment patterns amid a rising stock market.
This trend was largely driven by increased household income and a decrease in new apartment supplies, which led to more available funds for investment. Meanwhile, household fund procurement also more than doubled to 72.7 trillion won, as borrowing such as stock-backed loans expanded together with increased indebtedness to financial and intermediary institutions. The government, through two additional budget approvals, significantly ramped up fiscal expenditures, bringing its net fund procurement to an all-time high of 147.9 trillion won. In contrast, corporate net fund procurement declined sharply. Overall, household debt growth slowed, with the household debt-to-GDP ratio dropping to 88.6% by the end of 2025.
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