[2030 Betting on Stocks for the Future] Investing in Stocks by 'Yeongkkeul' Due to Future Anxiety

[Asia Economy Reporter Song Hwajeong] The stock investment craze among people in their 20s and 30s, known as the 'MZ Generation' (those born from the late 1980s to the 2000s, combining Millennials and Generation Z), is intensifying. Since the COVID-19 pandemic last year, a large number of individual investors have entered the stock market, with the 2030 generation investing more boldly and actively. Facing a low-interest-rate era, soaring real estate prices, and a tough job market, the 2030 generation is betting on the future through stock investment, coining new terms like 'Youngkkeun (pulling together all one's resources)' and 'Debt Investment (borrowing to invest)'.

According to Kiwoom Securities on the 20th, the number of new accounts opened by the 2030 generation in January this year was 353,311, more than seven times the 52,048 accounts opened in January last year. The number of accounts opened by people in their 20s increased from 22,369 to 173,189, and those in their 30s rose from 29,679 to 180,122. Last year, the total number of new accounts was 2,359,401, with people in their 20s accounting for 505,832 and those in their 30s for 673,753, making up half of the total.

The massive entry of the 2030 generation into stock investment is driven by anxiety about the future. Housing prices continue to rise without slowing, while wage increases lag far behind. There is a prevailing perception that saving money at historically low interest rates makes it difficult to accumulate wealth. The N-po generation, who have given up on various things such as dating, marriage, and childbirth due to the worsening situation caused by COVID-19, is increasing.

Yu Jiho (34 years old, pseudonym), who plans to marry this year, started investing in stocks last year. When trying to find a jeonse (long-term deposit rental) house, he realized his budget was insufficient and thought that investing in stocks was the only way to grow his money quickly. Yu said, "I broke into the marriage fund account that my girlfriend and I had been saving together to start investing in stocks," adding, "Since I earned several times more from stock investments than the interest accrued on the savings, we decided to always allocate a certain amount from our monthly salaries to buy stocks."

Kim Seonghee (32 years old, pseudonym), who has been a job seeker for several years, has recently been focusing on studying stocks instead of job hunting. Unable to continue preparing for employment indefinitely, she changed her career path to become a full-time investor. Kim said, "I had been earning living expenses through part-time jobs while preparing for employment, but recently the store where I worked closed due to COVID-19, and I lost my job. I started investing in stocks to try to earn some living expenses," adding, "Since I don't know when I will get a job, I think it is better to study stocks properly and become a full-time investor."

The number of 2030 generation interested in stock investment is steadily increasing. According to Viva Republica, which operates the mobile financial service Toss, a survey of 1,093 Toss users in their 20s and 30s found that 47% are already investing in stocks, and 42% said they plan to invest in stocks in the future. Only 11% responded that they have no investment plans.

The 2030 generation shows different investment patterns compared to the existing 40s and 50s age groups. They prefer non-face-to-face methods and use YouTube for information rather than relying on securities firms. According to a private banker (PB) at a securities company, "The 2030 generation tends to gather information through YouTube rather than visiting securities company PBs," adding, "Those in their 20s and 30s with some financial leeway tend to invest long-term in blue-chip stocks, while those aiming to secure living expenses often engage in small-scale short-term trading."

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