Thanks to the wide use of smartphones, stock trading via mobile devices has increased significantly in South Korea, leading mobile transactions of stocks on the main Korea Composite Stock Price Index (Kospi) bourse to exceed 30 percent of total trading volume this year for the first time.

According to Korea Exchange (KRX) on Sunday, average daily volume of stock trading through a mobile trading system (MTS) in the Kospi market between January 1 and July 21 of this year has reached 124 million stocks, making up 30.9 percent of total transactions on the main bourse. Average daily volume of stock trading through MTS in the secondary Korea Securities Dealers Automated Quotations (Kosdaq) market has amounted to 253 million shares, up 38.9 percent from last year’s 182 million shares and accounting for 35 percent of total transactions. Mobile trading on the both Kospi and Kosdaq markets hit all-time highs as it has steadily grown since 2009 when the use of smartphones started to increase significantly.

Mobile transactions in the Kospi market were not popular until 2009 with the share pitiful at 2 percent of total trading volume. The share increased to 3.5 percent in 2010, 8.5 percent in 2011, 15 percent in 2012, 19.3 percent in 2013, 21.5 percent in 2014 and 27.3 percent in 2015. Mobile trading in the main bourse has surpassed 30 percent this year for the first time.

Mobile trading has grown more rapidly in the tech-heavy Kosdaq market where retail investors make up the bulk of trading activities. Mobile transactions in the market, which accounted for 2.8 percent of total trading volume in 2009, has grown to 4.1 percent in 2010, 9.7 percent in 2011, 16.1 percent in 2012, 20.3 percent in 2013 and 24.3 percent in 2014. It topped the 30 percent threshold in 2015 for the first time.

By Chae Jong-won

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