Individual investors are sustaining steady capital inflows into the market through monthly dollar-cost averaging in exchange-traded funds (ETFs). Analysts attribute this trend to growing interest in equities among Korean investors, leading to long-term accumulation strategies focused on indices and sectors.
According to Korea Exchange data released on the 22nd, individual investors have net purchased 5.99 trillion won worth of ETFs on the KOSPI this year, offsetting their net selling of individual stocks. Monthly ETF net purchases by individuals reached 3.1 trillion won in September, 7.04 trillion won in October, and 4.66 trillion won in December, supporting the index's gains.
Pension accounts have been the primary driver of ETF purchases. Individual Retirement Pension (IRP) and personal pension savings accounts only allow investment in domestically listed ETFs. Securities firms began rolling out automatic dollar-cost averaging services for ETFs in retirement pension accounts starting early last year, making this investment pattern more pronounced.
IRP and pension savings account net purchases by NH Investment & Securities customers grew from 2.22 trillion won in 2023 to 5.07 trillion won in 2024, and 9.9 trillion won in 2025, roughly doubling each year. Domestic ETF net purchases through NH Investment & Securities' stock accumulation service also surged 337.38% year-on-year last year.
Toss Securities' stock accumulation service has also seen rapid user growth, rising from 1.15 million users at the end of 2023 to 1.72 million at the end of 2024, and 2.36 million at the end of 2025. According to Toss Securities, eight of the top 10 domestic securities by net purchases through its stock accumulation service in December last year were ETFs.
ETF investments are considered a relatively rational investment vehicle for individuals as they reduce volatility and provide diversification benefits compared to individual stocks.
"As the belief that stock markets rise over the long term has grown among investors, steady capital inflows through ETFs have contributed to the recent KOSPI rally," a financial investment industry official said. "In volatile market conditions, the trend of individuals managing risk through dollar-cost averaging is strengthening."