Securities Academies Thrive as KOSPI Tops 7,000... "Beware of Debt-Fueled Investing"

More Investors Flock to Securities Academies Over Reading Rooms and YouTube
Flood of Responses Within 10 Minutes After Requesting Private Stock Tutoring
Debt-Fueled Investing Surpasses 36 Trillion Won... Short-Term Profit Seeking Should Be Avoided

"Rather than enduring the stress of work, it's better to study stocks. I've even staked my retirement plans on this."

At 7 p.m. on the 6th, at a stock academy in Yeongdeungpo-gu, Seoul, the classroom was filled with students of all ages for the first day of a six-month beginner course for amateurs. From college students in their twenties to office workers in suits coming straight from work, and seniors with graying hair, people from all generations were mixed together, focusing intently on the instructor. They diligently took notes as the instructor wrote keywords on the whiteboard. Lee Seulgi, an office worker in her thirties who even paid the tuition for the one-year master class on the first day, said, "My uncle studied stocks and made a lot of money," adding, "My goal is to become like him and live without being tied down to a regular job."

On the 6th, Director Kim Youngwoong is giving a lecture to students of various ages in the opening class at the Securities Academy located in Yeongdeungpo-gu, Seoul. Photo by Jiye Lee

As the KOSPI index broke through the 7,800 mark during trading on the 11th, setting a new all-time high, securities academies offering stock investment education are experiencing unprecedented prosperity. More people are choosing to pay hundreds of thousands of won for systematic instruction, rather than relying on ambiguous "reading rooms" (chat rooms recommending investment stocks) or YouTube lectures.

According to the academy industry, at least six offline stock academies in the Seoul metropolitan area alone are thriving. The scale increases further when including the nationwide online lecture market. The stock academy in Yeongdeungpo-gu visited by the reporters also offered simultaneous video streaming. The number of stock instructors registered on the life services matching platform "Soomgo" has exceeded 2,700. The cumulative number of requests for private stock tutoring estimates has reached 12,469, with the average monthly tuition around 200,000 won. When a request for a quote for stock tutoring was made on this platform, within just 10 minutes, 12 experts with impressive backgrounds—such as investment competition winners, former fund managers, and analysts—reached out.

On the 7th, as the KOSPI index surpassed the 7500 mark early in the session, reaching a new high, the status of the domestic stock market was displayed on the electronic board in the dealing room of the Hana Bank headquarters in Jung-gu, Seoul. Photo by Kang Jin-hyung

At stock academies, education covers the basics of stock chart analysis, essential investment terminology, and trends in various economic indicators such as exchange rates and interest rates—essentially providing an overview of the entire securities market. Kim Youngwoong, Director of Warren Securities Edu in Yeongdeungpo-gu, who has been running the academy for seven years, said, "After the KOSPI broke through 5,000, the number of students surged by 50%. We used to get around five to six inquiry calls a day, but recently, we've been receiving more than 40."

The academy attracts a diverse range of students, from financial professionals in their thirties seeking to improve their investment skills, to students in their sixties who entered the market after increasing their assets through real estate investment, as well as first-time stock investors. Kim, a teacher in his forties working in the education sector, said, "I've seen many people around me take out loans and end up with losses. There's so much fake information on YouTube that I decided to enroll here for proper financial education."

However, concerns are rising about the so-called "debt-fueled investment (bit-too)" boom, which has accompanied the KOSPI's upward trend. As the KOSPI index has continued to reach record highs day after day, the scale of investors' margin loans has also increased sharply. According to the Korea Financial Investment Association, the outstanding balance of margin loans—which is considered a key indicator of "debt-fueled investment"—stood at 35.5072 trillion won as of the 7th. This marks an increase of about 30% compared to the early 27 trillion won range at the end of last year. Notably, on April 29, it soared to 36.0683 trillion won, surpassing the 36 trillion won mark for the first time ever.

Some analysts point to a so-called "FOMO (fear of missing out)" mentality as a driver behind the increase in loans. Yu, a teacher in his forties whom we met at the academy, said, "In my auction study group, everyone was talking about making money in stocks, and I felt like I was falling behind, so I chose stocks instead of pursuing a certification."

In particular, the expansion of margin investing among the younger generation, who have relatively weak asset bases, raises concerns about their exposure to risks from future market volatility. Kang Sungjin, Professor of Economics at Korea University, noted, "The current stock market is overheated due to a combination of factors, including expectations for an end to the Middle East war. Since Samsung Electronics and SK hynix account for about 40% of the KOSPI's gains, we need to be wary of the illusion that the entire index is rising."

He added, "Young people without capital bases should be careful with debt-fueled investing. While the increase in securities academies can be seen as positive in terms of expanding understanding of the capital market, attending academies solely for short-term profits should be avoided."

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