Energy Product Derivatives - South Korea

South Korea

The nominal value in the Energy Product Derivatives market market in South Korea is forecasted to reach US$1,255.00bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 2.83%, leading to a projected total of US$1,403.00bn by 2028.
The average price per contract in the Energy Product Derivatives market market is US$2.22 in 2024.
When compared globally, the in the United States achieves the highest nominal value (US$9,915.00bn in 2024).
In the Energy Product Derivatives market market of South Korea, the number of contracts is expected to reach 612.00k by 2028.
South Korea's Energy Product Derivatives market is experiencing increased interest from investors seeking exposure to price fluctuations in the energy sector.

Market

Region

Region comparison

Currency

Analyst Opinion

Over the past few years, the Energy Product Derivatives market in South Korea has shown significant growth and development. Customer preferences in the South Korean market are increasingly leaning towards Energy Product Derivatives as a way to diversify investment portfolios and hedge against volatility in the energy sector.

Investors are attracted to the potential for high returns and the opportunity to speculate on price movements without owning the physical commodities. Trends in the market indicate a growing interest in renewable energy derivatives, reflecting South Korea's commitment to transitioning towards a more sustainable energy mix. This shift is driven by government initiatives to reduce carbon emissions and increase the share of renewable energy sources in the country's overall energy consumption.

Local special circumstances, such as South Korea's heavy reliance on energy imports and geopolitical tensions in the region, play a significant role in shaping the Energy Product Derivatives market. The need to secure stable energy supplies at competitive prices drives market participants to actively engage in derivative contracts to manage risks associated with price fluctuations and supply disruptions. Underlying macroeconomic factors, including global energy prices, geopolitical events, and regulatory changes, also impact the Energy Product Derivatives market in South Korea.

Fluctuations in oil prices, for example, can influence the demand for energy derivatives as market participants adjust their risk exposure based on price expectations and market dynamics. Additionally, regulatory developments related to energy markets can create opportunities for derivative trading as market participants adapt to new rules and compliance requirements.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.