Korean millionaires have buoyant outlook for stocks for this and coming years

Millionaires in South Korea think stock is the best investment for this year as well as coming years and prefer domestic stocks over offshore ones while naming Samsung Electronics, Hyundai Motor, Apple and Tesla as favorites to park their money for at least 10 years.

In a multiple-choice survey conducted by Samsung Securities from Jan. 11-22 on 863 clients with deposit assets of minimum 1 billion won ($894,855), 77.9 percent pointed to stocks as the most promising investment for this year.

Nearly half or 46.6 percent named domestic stocks, 31.3 percent foreign stocks, 7.5 percent gold and commodities, 7.2 percent real estate 7.2 percent and 2.2 percent bonds.

“Given the increase in stock transaction volume and improved companies’ earnings prospects, there is enough room for stocks to grow further,” said Jang Hyo-seon, head of global equity team at Samsung Securities. “Sound returns are expected on the back of initial public offering (IPO) plans of sector majors such as Krafton, Kakao Bank and Kakao Pay.”

Samsung Electronics was the top choice for a stock deserving holding for more than 10 years, drawing 48 percent. Hyundai Motor came next with 10 percent, Kakao 8 percent, LG Chem 7 percent and Samsung Biologics 6 percent.

The survey coincides with retail net purchase of 10.16 trillion won in Samsung Electronics shares in January, nearly half of total retail net stock buy for last month.

Apple was an offshore favorite, selected by 288 or 32 percent of the respondents.

More than one out of four respondents, or 26.9 percent, are willing to put up 100 million won to 300 million won out of their bank savings to buy stocks. Another 23.4 percent could take out side more than 1 billion won for stock investment.

The portion of stocks in investment portfolio also grew for investors in all age groups. The surveyed saw their stock portion increase an average of 45.6 percent last year.

In particular, their overseas stock ownership grew a staggering 170.7 percent on average, with those in their 20s recording the highest growth in foreign stock holding by 309.5 percent. They were followed by those in their 30s with a 257.8 percent rise, 50s 234.7 percent and 40s 125.4 percent.

Most of them have a positive outlook on the Korean stock market. Almost half of the respondents, or 46.9 percent, projected the Kospi to reach 4,000 within three years, with 10.5 percent saying the market would even break the 5,000 mark. Only 4.4 percent said the Kospi would remain below 3,000.

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