Brokerage-type Individual Savings Accounts (ISA) have become the dominant choice among Korean investors, with their share of total ISA subscribers jumping 20 percentage points over four years to reach 85%.
As of the end of October this year, 5.89 million out of 6.95 million total ISA subscribers held brokerage-type accounts, accounting for 85% of the market, according to data from the Korea Financial Investment Association released on the 12th. Trust-type accounts followed with 924,375 subscribers (13%), while discretionary-type accounts had 131,536 subscribers (2%).
Brokerage-type ISA subscribers have grown steadily each year. At the end of October 2021, there were 1.91 million subscribers, representing 64% of total ISA holders. The figure rose to 3.49 million (76%) in 2022, 3.81 million (78%) in 2023, and 4.82 million (83%) in 2024.
ISA is a tax-advantaged account product launched in March 2016 that allows investment in domestic stocks, exchange-traded funds (ETFs), funds, and savings deposits. The brokerage type, introduced in 2021, has attracted the most investor interest among ISA categories. It allows individuals to directly invest in and manage domestic bonds and stocks, and can only be opened through securities firms. Trust-type accounts allow subscribers to give investment instructions through trustees and mainly invest in deposit products, with access available through securities firms, banks, and insurance companies. Discretionary-type accounts delegate investment management to professional fund managers.
Brokerage-type accounts also led in total assets. Of the 45.21 trillion won in total ISA assets as of the end of October, brokerage-type accounts held 28.47 trillion won, followed by trust-type at 15.53 trillion won and discretionary-type at 1.21 trillion won.
For brokerage-type ISA, subscribers aged 50-59 held the largest amount at 8.55 trillion won, while those aged 30-39 had the most accounts at 1.48 million. Male subscribers held 15.64 trillion won compared to 12.83 trillion won for female subscribers. In terms of investment allocation, ETFs accounted for 43.8% of brokerage-type ISA investments, followed by stocks at 34%.
