Market Insights Financial Wealth Management

Digital Investment - South Korea

South Korea

In 2024, the Digital Investment market in South Korea is projected to reach a total transaction value of €18.13bn.
This market segment is expected to show an annual growth rate (CAGR 2024-2027) of 2.55%, resulting in a projected total amount of €19.55bn by 2027.
Among the players in this market, Neobrokers dominate with a projected total transaction value of €12.53bn in 2024.
However, United States holds the highest cumulated transaction value, reaching €1,652,000.00m in the same year.
South Korea is experiencing a surge in digital investment as the government promotes innovation and fosters a supportive ecosystem for startups.

Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe

Marché

Région

Comparaison de régions

Monnaie

Analyst Opinion

The Digital Investment market in South Korea is experiencing significant growth and development, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in South Korea are shifting towards digital investment platforms due to their convenience, accessibility, and cost-effectiveness.

Investors are increasingly turning to online platforms to manage their investment portfolios, as these platforms offer a wide range of investment options and provide real-time information and analysis. Additionally, the younger generation in South Korea, who are more tech-savvy and comfortable with digital platforms, are actively seeking out digital investment solutions. Trends in the market indicate a growing demand for robo-advisory services in South Korea.

Robo-advisory platforms use algorithms and artificial intelligence to provide personalized investment advice and portfolio management. These platforms are gaining popularity due to their low fees, automated investment strategies, and ability to cater to different risk profiles. The rise of robo-advisory services is also driven by the increasing adoption of mobile banking and smartphone usage in South Korea, as investors can easily access and manage their investments through mobile apps.

Another trend in the market is the emergence of social trading platforms in South Korea. Social trading allows investors to follow and copy the trades of successful traders, enabling them to benefit from the expertise and strategies of experienced investors. This trend is fueled by the desire for novice investors to learn from experienced traders and increase their chances of making profitable investments.

Social trading platforms also provide a social aspect to investment, allowing investors to interact with each other and share insights and opinions. Local special circumstances in South Korea contribute to the development of the Digital Investment market. The country has a highly connected population with a high level of internet penetration and smartphone usage.

This provides a conducive environment for the growth of digital investment platforms, as investors can easily access and use these platforms. Additionally, South Korea has a strong financial technology (fintech) ecosystem, with government support and investment in fintech startups. This ecosystem fosters innovation and encourages the development of digital investment solutions.

Underlying macroeconomic factors also play a role in the development of the Digital Investment market in South Korea. The low interest rate environment in the country has led investors to seek alternative investment options that offer higher returns. Digital investment platforms provide access to a wide range of investment products, including stocks, bonds, and mutual funds, allowing investors to diversify their portfolios and potentially earn higher returns.

Furthermore, the growing middle class in South Korea, along with increasing disposable income, is driving demand for investment opportunities and financial services, which digital investment platforms can cater to. In conclusion, the Digital Investment market in South Korea is experiencing growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards digital investment platforms, the rise of robo-advisory services and social trading, the highly connected population and strong fintech ecosystem, the low interest rate environment, and the growing middle class all contribute to the expansion of the Digital Investment market in South Korea.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.