Daily mobile stock trading volume increases by 220% in 2020

Stock trading through mobile trading platforms in South Korea hit an all-time high in 2020, data showed on Tuesday, reflecting the strong appetite of retail investors for equity investments during the pandemic-hit market.

The average daily amount of stock trades through mobile trading systems was 26.6 trillion won ($ 23.03 billion) last year, up 219.6% year-on-year from 8 340 billion won, the Bank of Korea said in its annual financial information report.

On average, 116.3 million transactions were made per day via mobile devices in 2020, up 44.8% from the 80.31 million transactions in the previous year. The number of daily average transactions and their amounts have reached new highs since the central bank started collecting related data in 2013.

The sharp rise is not only due to the recent frenzy of investing in stocks, but also the preference of investors for smartphones over personal computers.

The portion of shares traded on the main exchange through MTS accounted for 40.7% of the combined volume, exceeding the amount of daily trades made through traditional home-based trading systems, other data compiled by the Korea Stock Exchange showed. Until April of this year, mobile devices were the most preferred medium of trading on Kospi with 47.6%.

Supported by the unprecedented pandemic and the contactless boom that is spreading across the country, the use of major electronic financial services here has also shown an upward trend.

Excluding the state-run Export-Import Bank of Korea, the average number of daily transactions processed through online banking and mobile banking increased 13.2% year-on-year to 13.78 million the previous year, while the average amount of money processed using these means climbed 20.7 percent year-on-year to 58.8 trillion won.

The number of IT workers in 150 domestic financial companies saw a 3.9% year-over-year increase, unlike the shrinking workforce in companies. The result was followed by the efforts of local banks to accelerate digital transformation.

While the figure stood at 10,265 in total at the end of 2020, it represented 4.5% of all financial workers, according to the data.

By Jie Ye-eun ([email protected])

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