Business · Markets · 1 day ago
South Korean investors turn to managed accounts as demand and assets rise
South Korean investors are increasingly paying securities firms to manage their money through wrap accounts, which can invest in stocks, bonds and funds.
The number of customers reached 2.01 million, while assets in the accounts rose to 123.5 trillion won by the end of August.
The growth follows a strong stock market and comes as some individual investors feel overwhelmed by market swings and the volume of investment information.
One investor who put 100 million won into an account in March had a reported return of 41% this year, compared with a 7% rise in the KOSPI over the period cited.
Returns are not guaranteed, and these accounts can charge management fees as well as performance fees that may exceed 20% of profits.
Advisory wrap accounts, in which outside firms recommend investments, have also grown, including products that shift to safer assets after reaching a target return.
The trend matters because more investors are handing investment decisions to professionals, while accepting higher costs in an effort to manage volatility.
Managed investment accounts in South Korea have grown as more investors turn to professionals amid market volatility and a wider range of investment products.
The number of clients using discretionary wrap accounts reached 2,012,196, staying above 2 million for three consecutive months.
Assets in wrap-account contracts reached 123.48 trillion won at the end of August, up 35% in 11 months.
Advisory wrap-account assets rose 220% from September last year to 10.66 trillion won in August.
Investors are continuing to use the accounts despite fees that can include performance charges of more than 20% of profits.
- Who
- Korean retail investors and securities firms offering managed wrap accounts.
- What
- Managed investment accounts are attracting more clients and assets as investors seek professional help.
- When
- The figures were reported on October 9, 2026; account assets are stated as of the end of August.
- Where
- South Korea.
- Why
- Investors are seeking help amid market volatility, growing investment information and a wider range of products.
This story does not have two clearly opposing sides.
Investors ranging from beginners who do not know where to invest despite the rising index to wealthy people seeking to maximize returns are turning to wrap accounts
The variety of investment products is also a reason people entrust their money to professionals
Wrap-account client numbers began rising sharply after the KOSPI index passed 4,000.
An individual investor entrusted 100 million won to a securities firm's wrap account.
The number of discretionary wrap-account clients first exceeded 2 million.
Wrap-account contract assets reached 123.48 trillion won.
Hankyung reported that discretionary wrap-account clients numbered 2,012,196.
- Discretionary wrap-account clients
- 2,012,196
- Wrap-account contract assets
- 123.48 trillion won at end-August
- Advisory wrap-account assets
- 10.66 trillion won in August
- Five securities firms' wrap-account assets
- 83.77 trillion won, up 71% in a year
- Individual investor's account return
- 41% cumulative for the year
Sources
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