Share Ownership Distribution By Investor Type in 2009
The KRX made an analysis of share ownership of 1,788 KRX-listed companies (767 companies listed in the KOSPI Market and 1,021 in the KOSDAQ Market).
The total number of investors increased to 4.67 million, an increase of 0.8 percent from the previous year. Number of investors holding the stocks of companies listed in the KOSPI Market increased by mere 0.6%, but number of investors holding the stocks listed on the KOSDAQ Market rose by 7.9%.
The increase came about as the share price soared on account of improved earnings of listed companies (except for the financial industries) and large amount of net buying by foreign investors, which attracted new investors. However, as retail investors became the net seller and deserted the markets in the latter half of 2009, the increase dwindled.
The stock investing public accounted for 19.1% of the economically active population in Korea, suggesting that one out of 5.2 Koreans is holding KRX-listed stocks, which is the highest since 19.3% in 1999. When compared with the total population, it shows one out of 10.4 Koreans holds the KRX listed stock, the highest since 1993.
The shareholding distribution at the end of 2009 shows that the retail investors account for 34.6%, foreign investors 30.4%, corporate investors 21.2%, and institutional investors 12.0% of the market capitalization, respectively. As of 2009 end, retail investors were holding 34.6 percent of the stock market capitalization, up 4.6 percent from a year earlier, while foreign investors were taking up 30.4 percent, corporate investors 21.2 percent, and institutional investors 12.0 percent.
In addition to the increased shareholding of retail investors, the shareholding of foreign investors increased by 3.1% owing to such factors as FTSE’s reclassification of Korea into the developed market index group, thus indicating that Korean market has bounced back from the recent bearishness. Thanks to the Korean securities market’s inclusion in the advanced market category of the FTSE index, foreign investors increased their holdings up to 3.1 percent, making a turnaround from a decline.
Shareholding by investor type (Unit: %, As of the end of 2009)