As the domestic stock market continues to thrive, the number of registered individual professional investors has seen a sharp increase.
On September 2, Park Seong-hoon, a member of the National Assembly's Political Affairs Committee, revealed data from the Financial Investment Association indicating that as of the end of July this year, there were a total of 26,282 individual professional investors.
This marks an increase of 3,787 (16.8%) from the end of last year, when the count was 22,495.
Individual professional investors are individuals with a certain level of investment experience who meet at least one of the income, asset, or expertise criteria and are registered after passing a securities firm's review.
Once registered, these investors benefit from relaxed regulations that typically apply to general investors. After completing specific training, they can invest in high-risk products such as Contracts for Difference (CFDs) and are not subject to certain minimum investment amounts or limits on financial products.
The number of individual professional investors rose to 26,672 by the end of 2022 but then declined. By the end of 2024, the figure had dropped to 20,820. However, following a rebound in the domestic stock market last year, the number has begun to rise again.
Notably, the pace of growth has accelerated this year.
In February, the monthly increase was limited to 271, but as the KOSPI index continued to rise, the number jumped to 779 in May and 925 in June.
Conversely, in July, when the KOSPI experienced a sharp correction, the increase fell to 206.
From the beginning of the year through July, there were a total of 11,173 new registrations as individual professional investors, not accounting for any cancellations by existing registrants.
The strong performance of the domestic stock market, often referred to as a 'bull market,' has heightened interest among individual investors in stock trading, prompting many to seek registration as individual professional investors in pursuit of higher returns.
Indeed, the KOSPI, which briefly fell below 2,300 in early April last year, has since been on an upward trajectory, setting multiple all-time highs this year.
Park Seong-hoon emphasized the need to assess whether adequate investor protection measures are in place in light of the surge in individual professional investors.
He stated, "The nearly 3,800 increase in individual professional investors in just seven months is a signal that financial authorities cannot afford to overlook. We must ensure that the designation of professional investor does not undermine investor protection or become a loophole for selling high-risk products."
He added, "Rather than shifting risks onto individuals under the guise of expanding investment choices, we must establish effective investor protection measures."
* This article has been translated by AI.
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