"When the market bottoms out, is it my chance to try stocks?"... New investors steadily entering

Increase in New Account Openings by Securities Firms... Noticeable Rise in Samsung Electronics Inquiry Calls

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[Asia Economy Reporter Kum Boryeong] "I heard you have to get in when it's the bottom, so I'm trying to start investing in stocks."

Office worker Yoon Mo (36) recently began to take an interest in stocks. With interest rates on savings and deposits at commercial banks effectively at zero, he heard a lot from those around him that stocks could be an investment opportunity. Yoon said, "I've only heard about things like the KOSPI on the news, but I've never really checked it carefully. This is the first time I've opened a securities account," adding, "Now I plan to buy stocks one by one as their prices drop."

As the stock market plunged due to fears over the novel coronavirus (COVID-19), the number of individual investors newly entering the stock market is increasing. According to NH Investment & Securities on the 19th, the average daily number of non-face-to-face account openings rose from 628 in January to 6,490 this month. SK Securities also saw a 100% increase in average daily account openings this month compared to January. In the case of Mirae Asset Daewoo, the number of account openings was 62,534 in January, 83,457 last month when COVID-19 spread intensified, and 69,442 up to the 17th of this month. A representative from Kiwoom Securities, which provides the Mobile Trading System (MTS) 'Hero Moon,' explained, "New account openings exceeded 140,000 in January, increased last month compared to January, and continue to rise this month." A Shinhan Financial Investment official also said, "The number of new non-face-to-face account openings in the past month is higher than the quarterly numbers from last year."

In securities firm branches, inquiries from those wanting to start investing in stocks have also surged. Kim Mo (40), a private banker (PB) working at a securities firm branch in the Seoul metropolitan area, said, "In the past month, we've received quite a few calls at the branch from people who have never invested in stocks before, asking which stocks they should buy."

Among these, the most common question is whether it is okay to buy Samsung Electronics now. Samsung Electronics' stock price, which rose to 62,800 won in January, fell to the 45,000 won range the day before. Another securities firm official said, "Because Samsung Electronics has the largest market capitalization and is considered Korea's number one representative stock, new investors most often choose Samsung Electronics as their first purchase over other stocks."

On online communities, it is not difficult to find posts asking how to open a stock account or which securities firm account is recommended. People compare the pros and cons of different firms, listing factors such as commission-free status, MTS features, user interface (UI), and cashback benefits to determine which securities firm is better.

However, experts have expressed concerns about new investments amid the sharp market decline. Kim Yoo-gyeom, head of the research center at Cape Investment & Securities, emphasized, "Rather than taking action in any direction, it is better to observe the ongoing situation." A securities industry official advised, "In the current situation where it is difficult to identify the bottom, it is not too late to wait for the market to rebound before buying rather than purchasing just because the stock price is cheap."

This content was produced with the assistance of AI translation services.