Young Korean investors are currently dumping local stocks and are turning their eyes to the US and digital assets markets. Reports show that the number of young investors still active in the domestic stock market has fallen very sharply. This is a development that has sparked mixed reactions across the domestic stock market.
According to data from Korean securities depository agencies, investors in their 20s and 30s still declined positively in the domestic market, falling from 14.9% and 20.9% to 11% and 19.4%, respectively. In a recent interview with a 20-year-old Korean worker, he said he had never invested in Kospi, but noted that it was not beneficial.
This same response is shared by most people, and there is a reason why they are shifting their investments to US stocks and digital assets.
He said he is “gradually building a portfolio of US stocks,” according to Heo in-sung, another worker in his 30s. Heo added that it is gradually moving from Korean companies such as Samsung Electronics and Kakao.
Korean investors shift to US stocks and crypto
Reports show that local investments by Korean investors in their 20s and 30s have declined, reaching record lows of 9.8% and 18.8%. Ownership levels also showed the same trend, with people in their 30s holding about 9.9% of listed stocks in the Korean market in 2020, but in 2024 that number fell to 7%. For people in their 20s, the decline has fallen from 2.2% to 1.6% over the same period.
Investors in their 40s have not been ruled out, indicating how this trend is. The group represents the largest demographic in the Korean investor market and is seriously dropping out of the market. According to the latest market data, they accounted for around 23% in 2021, but fell to 22.1% in 2024. People over 50 currently own 70.9% of all domestic stocks and take advantage of the opportunity to climb.
This trend also reflects the aging of Korean investors, but also shows that most of them do not see the usefulness of being in the country’s stock market. This trend is bothering Hwang Se Yoon, a senior researcher at the Korean Institute of Capital Markets. “If the younger generation continues to pull back, trading activity may be reduced and market liquidity may be reduced,” she said.
Digital assets booming among young people
Korean investors in their 20s and 30s were reluctant to the domestic stock market, but the crypto market had an appeal. According to the Financial Services Commission, approximately 48.7% of crypto industry investors were in the age category as of last year. The committee also said that total trading volumes on the top five exchanges surpassed a 2.52x victory.
“Now, it’s common knowledge in the industry that cryptocurrencies like Bitcoin are sucking up retail investment funds from the stock market,” the internal brokerage said. Sources say that over 700,000 foreign investors own shares in NHS investments and securities, 56% of which are in their 30s and 40s. In contrast, only about 13% of Kospi 200 investors were in their 30s, with 57% being over 50 years old.
The volume of foreign stock trading carried out by Koreans almost doubled in 2023, moving from 59.3 billion shares in 2022 to 112.4 billion shares next year. The number rose 39% to 156 billion shares, according to data shared by Financial Supervisory Services (FSS).
The move continues this year, with South Korean investors trading $10.9 billion in the first quarter despite the US stock market falling. This trend is currently adopting the term “Eoljookmi.” This means an unconditional attitude that shows willingness to invest in the US market regardless of conditions. However, young people are worried about maximizing their income, which has driven them into US stock markets and digital assets, and the Korean market has become a kind of stagnation since the Covid-19 pandemic.
