Recently, even as the KOSPI index surpassed the 4,200 mark and reached an all-time high, it has been revealed that a higher proportion of investors are experiencing losses.

According to an analysis conducted by Yonhap News on November 10, based on data from NH Investment & Securities, out of 2,401,502 accounts held by customers with domestic stock balances at NH Investment & Securities, 1,312,296 investors (54.6%) had incurred losses as of October 30. This date marks the first time the KOSPI index surpassed the 4,100 level during trading hours. The total loss for these investors amounted to 1.22154 trillion KRW, with the average loss per person standing at 9.31 million KRW.

‘Record High KOSPI’ Yet Over Half Experienced Losses
Average Loss per Person 9.31 Million KRW... Total of 1.2 Trillion KRW Evaporated

When breaking down the losses by amount, the largest group was investors who lost between 100,000 KRW and less than 1 million KRW, totaling 349,084 people (26.6%). This was followed by: ▲ less than 100,000 KRW, 311,107 people (23.7%); ▲ between 3 million KRW and 10 million KRW, 212,944 people (16.2%); ▲ between 1 million KRW and less than 3 million KRW, 205,765 people (15.7%).

Additionally, 139,249 investors (10.6%) lost between 10 million KRW and less than 30 million KRW. There were also as many as 53,405 investors (4.1%) who recorded losses exceeding 50 million KRW.

By age group, middle-aged investors in their 40s and 50s performed poorly. In particular, 60.1% (347,285 people) of investors in their 50s were in a loss position, while 59.7% (320,158 people) of those in their 40s also posted losses. This means that 6 out of 10 investors in their 40s and 50s are recording negative returns.

The age group with the lowest loss ratio was minors (33.9%, 33,231 people). Investors in their 20s also had a relatively low loss ratio at 44.3% (108,737 people). For those in their 30s, the loss ratio was about half, at 52.1% (258,258 people).

Investors with less than 1 million won are the most numerous
60% of investors in their 40s and 50s have 'negative returns'

In terms of loss amount, investors aged 60 and above suffered the largest average loss at 13.69 million KRW. The average loss for those in their 50s was 12.57 million KRW, for those in their 40s it was 9.29 million KRW, for those in their 30s it was 4.79 million KRW, for those in their 20s it was 2.15 million KRW, and for minors it was 1.53 million KRW, showing that the younger the age group, the smaller the loss amount.

Among the stocks held by investors with losses, POSCO Holdings accounted for the largest share of total losses. The loss ratio for POSCO Holdings, calculated as a percentage of the total loss amount among all loss-making investors, was 2.7%.

Other stocks with high loss ratios included Kakao (2.2%), Geumyang (1.7%), Ecopro BM (1.7%), Ecopro (1.3%), Celltrion (1.2%), SK Bioscience (1.0%), SillaJen (0.9%), and Enchem (0.9%).

Among these, the largest number of customers held Kakao shares, with 154,021 investors. This means that 8.5% of the 1,312,296 loss-making account holders included Kakao in their portfolios.

Kakao's stock price soared to the 160,000 KRW range in 2021, but is currently fluctuating around the 60,000 KRW level. It is estimated that many investors who bought during the price surge are continuing to hold the stock, anticipating a recovery after the decline.

Additionally, among loss-making customers, 70,751 held POSCO Holdings shares. The number of customers holding Ecopro BM and Ecopro shares was 56,605 and 50,595, respectively. These stocks were highlighted as leading secondary battery stocks during the surge in 2023.

Loss per person over 60 is the largest at 13.69 million KRW
Top loss stock is POSCO Holdings, followed by Kakao and secondary battery stocks

Conversely, the stock most commonly held by profitable customers was Samsung Electronics, with 410,078 investors. The share price of Samsung Electronics was in the 50,000 KRW range until mid-March this year, but has surged to the 110,000 KRW range this month on expectations of a semiconductor industry recovery. Compared to the beginning of the year (closing price of 53,400 KRW on January 2), this represents more than a twofold increase.

Among the accounts of profitable investors, Samsung Electronics accounted for 19.5% of total profits. There were also 101,488 profitable customers holding Samsung Electronics preferred shares.

SK Hynix also accounted for 9.0% of profits, with 92,359 customers holding shares. The upward trend in the semiconductor sector appears to have had a significant impact on investor profits.

In addition, among profitable customers, 146,718 held 'TIGER US S&P 500', an ETF tracking the US S&P 500 index.

This year, 3 out of 10 investors realized losses by selling their stocks. From January 1 to October 30, among 1,718,328 individual customers at NH Investment & Securities who sold stocks, 71.4% (1,227,468) realized profits, while 28.6% (490,860) realized losses. The total loss for those who sold at a loss was 301.11 billion KRW, with an average loss per person of 6.13 million KRW.

By loss amount, the largest group was those who lost between 100,000 KRW and less than 1 million KRW (146,766 people), followed by those who lost between 1 million KRW and less than 5 million KRW (120,984 people). Investors with losses of less than 100,000 KRW numbered 116,053.

Among all loss-making investors, 383,080 had losses of less than 5 million KRW, suggesting they may have sold to avoid further losses. There were 43,641 investors with losses between 10 million KRW and less than 30 million KRW, and 21,535 with losses exceeding 30 million KRW.

154,000 Kakao shareholders... Holding on despite stock price plunge
The main contributors to profits are Samsung Electronics and SK Hynix, along with US ETFs

On the other hand, the total profit for customers who realized gains after selling was 593.04 billion KRW, with an average profit per person of 4.83 million KRW. By amount, the largest group was those with profits between 100,000 KRW and less than 500,000 KRW (331,551 people), followed by those with less than 100,000 KRW (301,083 people). There were 79,868 investors with profits between 10 million KRW and less than 30 million KRW, and 41,662 with profits exceeding 30 million KRW.

Only 3.4% of investors who actually realized profits by selling stocks this year earned more than 30 million KRW.

Although social networking services are filled with posts boasting 'hundreds of millions of KRW in profits', statistics show that investors who achieved such returns are extremely rare.

While more people are expressing FOMO (Fear Of Missing Out) amid the KOSPI bull market, only a handful have actually earned tens of millions in profits, so hasty investments could lead to risks. Sung Hyunjung, Premier Blue Dogok Center Manager at NH Investment & Securities, told Yonhap News, "Even if the return is negative, each investor's average purchase price will be different," adding, "During a bull market, there are more people than expected who hesitate and enter late (when prices have already risen), resulting in a higher average purchase price."

Meanwhile, the stock with the largest realized profit among those sold this year was Samsung Electronics (accounting for 10.0% of total profits). The number of customers who sold Samsung Electronics was 404,955, overwhelmingly higher than for any other stock. This was followed by Doosan Enerbility (7.3%), SK Hynix (5.8%), Hanwha Ocean (3.7%), Hanwha Aerospace (1.9%), Hyundai Rotem and Samsung Heavy Industries (1.8%), in terms of profit share.