South Korea youth abandon the local stock markets at unprecedented prices, instead they direct their investments towards American stocks and Current currencies.
Low youth participation
Korea Securities reported only 9.8 % of the market from last year, a decrease from 14.9 % in 2021. Those decreased in the thirties to 18.8 % from 20.7 %.
Stock ownership decreased between 30-Somethers from 9.9 % to 7 % between 2020 and 2024, while the ownership of 20-Somethers decreased from 2.2 % to 1.6 %.
Even investors in their 1940s witnessed a decrease in the market share from 23 % to 22.1 %. This migration and migration left investors between 50+ with 71 % of local shares.
Market weakness
According to a report By the daily Korea Jongang, Korean markets offer worrying marks as young traders leave. The daily trading volume decreased from about 23 trillion Won ($ 16 billion) in early 2024 to about 18 trillion Won by the end of the year.
“The market that loses the younger investors cannot be called.”
Alternative investments flourish
Nearly half (47.8 %) of the cryptocurrencies in Korea were in the twenties and thirties last year. The trading volume of the five encryption exchanges in Korea exceeded 2.50 Won Kawadrillion, which represents approximately 74 % of the retail trade on KosPI.
Korean investors also doubled foreign stock transactions in 2023, from 59 billion shares to 112 billion. This growth continued in 2024, increasing 39 % to 156 billion shares. In the first quarter of this year alone, the Koreans made clear record purchases of about $ 11 billion in American stocks.
Performance leads to a shift
The main reason for this deportation is performance. While the Korean markets are struggling, Nasdak 50 % rose in 2023 and another 25 % in 2024.
About 72 % of Korean investors in American stocks got money in 2023, compared to only 48 % in local stocks. Crossed currencies made better, with Bitcoin More than 160 % increased last year to $ 108,249, which is its peak at all.
Korean markets also suffer from structural problems, as the proportion of profit distribution in the country was 27 % in position among 16 main economies.
While many experts believe that basic changes are needed in corporate governance, others see this temporary.
“If you commit the Korean market, they will return at the same speed,” said Roh John Changi from Hyundai Motor Securities.
Distinctive image of medium, tradingView graph
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