Commodities - South Korea

  • South Korea
  • The nominal value in the Commodities market of South Korea is forecasted to reach US$2,710.00bn in 2024.
  • It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.22%, resulting in a projected total amount of US$3,076.00bn by 2028.
  • The average price per contract in the Commodities market of South Korea stands at US$0.57 in 2024.
  • When considering a global perspective, the highest nominal value is achieved the in the United States ( US$45,690.00bn in 2024).
  • In the Commodities market of South Korea, the number of contracts is expected to reach 5,032.00k by 2028.
  • South Korea's increasing interest in gold futures reflects a growing appetite for diversification and hedging within the commodities market.
 
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Analyst Opinion

The Commodities market in South Korea has been experiencing notable developments and trends in recent years. Customer preferences in the South Korean Commodities market have been shifting towards more diverse investment options.

Investors are increasingly looking for alternative investment opportunities beyond traditional asset classes. This trend is driven by a growing interest in diversification and risk management strategies, as well as a desire to capitalize on potential high returns offered by Commodities. Trends in the market indicate a rising demand for Commodities trading among retail investors in South Korea.

This trend can be attributed to the increasing accessibility of online trading platforms and the growing awareness of the potential benefits of including Commodities in investment portfolios. Additionally, the volatility in global financial markets has led investors to seek out Commodities as a way to hedge against market uncertainties. Local special circumstances in South Korea, such as the country's strong technological infrastructure and advanced trading systems, have contributed to the growth of the Commodities market.

The presence of well-established financial institutions and regulatory frameworks has instilled confidence in investors, further fueling the expansion of the market. Moreover, the government's initiatives to promote financial market development have created a conducive environment for the Commodities market to thrive. Underlying macroeconomic factors, including South Korea's robust economic growth and stable political environment, have played a significant role in driving the development of the Commodities market.

The country's strong position in the global economy, coupled with its strategic location in the Asia-Pacific region, has attracted foreign investors to participate in the South Korean Commodities market. Additionally, the government's efforts to enhance market transparency and investor protection have bolstered confidence in the market, leading to increased participation from both domestic and international investors.

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.

Overview

  • Value Development
  • Volume
  • Analyst Opinion
  • Share development
  • Methodology
  • Key Market Indicators
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