The securities index jumped 24.5 percent from Jan. 30 to Feb. 13, rising to 7,684.70 from 6,172.47, far outpacing the KOSPI's 5.31 percent gain over the same period, according to data from the Korea Exchange released Monday.
The KOSPI 200 Financials index, composed of 22 stocks including financial holding companies, banks and insurers, climbed 22.34 percent for the second-largest gain. Other sectors posted smaller increases, with telecommunications up 14.59 percent, insurance up 13.81 percent and construction up 13.37 percent.
Financial strength also showed up in broader KRX indexes covering both the KOSPI and KOSDAQ markets. The KRX Bank index rose 25.36 percent to lead all sectors, followed by KRX300 Financials up 22.22 percent and KRX Securities up 21.19 percent.
Analysts attributed the gains to rising investor interest in brokerage shares amid the broader market rally, as well as buying in bank and insurance stocks ahead of dividend season.
Changes to dividend taxation also played a role. Starting this year, dividend income is subject to separate taxation, making bank stocks more attractive to high-net-worth investors.
"Separate taxation on dividend income has made bank stocks a favorable investment tool for wealthy investors expecting more than 20 million won in financial income," said Kim In, an analyst at BNK Investment & Securities. "If tax-free dividends are introduced, the appeal of bank stock dividends would likely broaden to retail investors as well."
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