Seoul: The value of South Korean investment funds experienced its most significant annual increase in 18 years in 2025, primarily fueled by a surge in equity investment, newly released data revealed.
According to Yonhap News Agency, the net asset value of South Korean investment funds reached 1,376.3 trillion won (approximately USD$953 billion) by the end of December. This marks a 25.3 percent increase, or 277.6 trillion won, from the previous year, as reported by the Korea Financial Investment Association (KOFIA).
KOFIA highlighted in a press release that this is the sharpest annual growth since 2007, when the market expanded by 31.9 percent. The notable rise in net assets was seen in both public and private funds during this period.
Delving into the specifics, equity funds saw an increase of 102.5 trillion won, while bond funds grew by 42.9 trillion won. Equity funds now make up 17.2 percent of the total fund market, representing a 5 percentage point rise over the previous year, largely due to a robust stock market.
The Korea Composite Stock Price Index (KOSPI) stood out as a top performer among global stock indexes last year, with a remarkable surge of over 75 percent. This growth was primarily driven by a rally in artificial intelligence chip stocks.
Additionally, the net assets of South Korean funds invested in overseas markets rose to 504.1 trillion won, reflecting a 25.6 percent increase over the same period, as per the data.