Stock market investment gains still being funneled into real estate: BOK report

The Bank of Korea (BOK) on Thursday assessed that investors are funneling their positive returns from stock investment into the local property market instead of on consumption. The report by the BOK comes as the nation’s benchmark KOSPI index surged past the 7,300 mark for the first time a day earlier, fueled by rallies from technology stocks. According to the BOK’s latest report, Korean investors spent about 130 won ($0.08) for every 10,000 won earned through stock investment on consumption, equal to 1.3 percent of their capital gains. The figure is in contrast to 3 to 4 percent of stock investment gains going into consumption by investors in other advanced nations, according to the findings. The report assessed that Koreans still preferred their investments going into real estate despite the recent rally. In case of households that own no homes, about 70 percent of their capital gains from stock investments have been moved to the property market, the central bank said. It then recommended that authorities need to “establish an investment environment that can turn the stock market into a

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