"Is This Hell?" MZ Generation's 'Kkangtong Account' Brings Daily Sighs

Dreaming of Becoming an Instant Millionaire... 'Yeongkkeul Geoji' Investing
Repaying Loans with 'Empty Account'... Life Motivation Crushed, Sighs

On the morning of the 3rd of last month, the Upbit Lounge cryptocurrency exchange's electronic billboard in Gangnam-gu, Seoul, displayed the prices of Bitcoin and altcoins. Photo by Yonhap News

[Asia Economy Reporter Seunggon Han] "I wish I could turn back time, but it's just too hard."

Kim, a man in his 30s who works at a company, has recently been looking into personal rehabilitation. Kim said, "You could call it beginner's luck in stocks; at first, I had some fun. But overnight, I ended up with what people call a 'kkangtong'." 'Kkangtong' is a term commonly used by stock investors to describe a stock account that has gone into the red due to a stock price crash. If the investment was made through a loan, Kim found himself in a situation where part of his monthly salary had to go toward loan repayments. Kim lamented, "Investment is a personal judgment and responsibility, but the hardship is unavoidable."

The number of investors in their 20s and 30s who have fallen into debt after investing in stocks or cryptocurrencies is increasing. Some, like Kim, took out loans to invest and are now using most of their salaries to repay them, leading to complaints about losing the will to live.

According to the 'Financial Stability Report (December 2021)' published by the Bank of Korea at the end of last year, household debt has already reached 1,850 trillion won. The proportion of borrowers exceeding the critical level stands at 6.3% of all borrowers. By age group, the proportion of borrowers in their 20s and 30s exceeding the critical level reaches about 11.3%. Furthermore, according to the Korea Capital Market Institute, those in their 20s and 30s account for 53.4% of new stock investors, more than half.

On the morning of the 23rd of last month, the exchange rate of KRW/USD and the KOSPI index were displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul. [Image source=Yonhap News]

◆ "I'm completely ruined" Dreamed of 'Sudden Wealth' but... Became 'Yeongkkeul Geoji'

Given this situation, there are talks that those who dreamed of becoming 'sudden millionaires' through investment have effectively become 'Yeongkkeul Geoji' (a slang term meaning someone who has borrowed every possible loan and is now broke). Another office worker, Park, said, "I often hear stories around me about people who gathered every bit of their soul to take out various loans and invested in coins and stocks, only to suffer losses," adding, "It looks like they will have to focus on repaying loans going forward, but it seems tough." Some even say, "If there is a hell, wouldn't it be here?"

With the recent cryptocurrency crash, investment losses among people in their 20s and 30s are expected to be even greater. According to data released by the cryptocurrency exchange Bithumb in May, 62.4% of investors in the first quarter of this year were in their 20s and 30s. Six out of ten investors are young people. This is a 13.4 percentage point increase from the 49% recorded in last year's survey, with the largest group of investors by age being those in their 30s (44.7%). Those in their 20s accounted for 17.6%.

Amid repeated cryptocurrency crashes, Bitcoin is expected to record its worst quarter in 11 years. On the 30th of last month (local time), CNBC cited data from crypto asset data provider CryptoCompare, reporting that Bitcoin prices have fallen about 58% this year. On a monthly basis, Bitcoin dropped more than 39% in June, marking the worst month since 2010.

Additionally, Coinbase, the largest cryptocurrency exchange in the U.S., announced plans to cut 20% of its workforce. On the 14th of last month, Coinbase announced plans to lay off 1,100 employees, equivalent to 20% of its total staff. Due to the cryptocurrency crash, Coinbase's stock price has plummeted about 80% this year.

'SOS Saengmyeongjeonhwa' installed on the northern end of Mapo Bridge over the Han River in Seoul. The photo is unrelated to specific expressions in the article. [Image source=Yonhap News]

◆ SOS Lifeline Sees Increase in Economic Counseling

Cases of depression are increasing, especially among the 20s and 30s generation who have suffered large losses from stock and coin investments. According to the Korea Lifeline, the number of young people calling for counseling from the 'SOS Lifeline' from January to June this year, including those on Han River bridges, increased by more than 8 percentage points compared to the previous year.

The proportion of callers experiencing economic difficulties through the SOS Lifeline increased from 8.8% last year to 10.5%. While it cannot be definitively concluded that the counseling was due to investment failures, considering the overlapping timing of the stock and coin crashes in the second quarter, it can be inferred that economic crises may have triggered negative thoughts.

Meanwhile, the Seoul Rehabilitation Court has introduced personal rehabilitation procedures to assist stock and cryptocurrency investors. In response to controversy over special treatment for rehabilitation, the court clarified that it does not intend to forgive all losses incurred from investments but will apply the same evaluation criteria as for other assets.

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