Investors aged teens to 80s in South Korea opened new stock accounts in large numbers this year as KOSPI surged to record highs, according to data from three domestic brokerages (Hana, KB, NH Investment & Securities). The 60-and-over age group opened 152,676 accounts, nearly matching the 20s demographic (155,625 accounts), while minors under 19 opened 81,172 accounts. The surge followed KOSPI's unprecedented rally, which broke 5000 on Jan 27, 6000 on Feb 25, 7000 on May 6, 8000 on May 26, and 9000 on June 18. Industry observers attribute the trend to elderly investors shifting funds from bank deposits and minors entering the market with allowance money, driven by fear of missing the bull run. The rapid gains have prompted warnings from securities firms to avoid chasing rallies and to focus on corporate fundamentals amid heightened volatility.
Investors Across All Age Groups Open New Stock Accounts
Dailyian compiled new stock account opening data from three domestic securities firms (Hana, KB, NH Investment & Securities). The 60-and-over age group opened 152,676 accounts, trailing the 20s group (155,625 accounts) by only 2,949 accounts. By age bracket, the 50s led with 222,682 new accounts, followed by the 40s (208,283 accounts), 30s (187,034 accounts), 20s (155,625 accounts), and minors aged 19 and under (81,172 accounts). An industry official stated that age barriers in domestic stock investing have effectively disappeared due to the historic bull market, with elderly investors moving bank deposits into stocks and minors entering with allowance money.
KOSPI Breaks Five Milestones from 5000 to 9000
KOSPI broke 5000 on Jan 27, 6000 on Feb 25, 7000 on May 6, 8000 on May 26, and 9000 on June 18. The index's rapid ascent fueled widespread belief that missing the current rally would be a lost opportunity, according to securities industry sources.
Elderly and Teen Investors Share Market Entry Stories
70-year-old Ms. Yang opened her first stock account this year after frequently hearing news that KOSPI was hitting record highs. She said bank interest rates made her anxious about retirement and that she decided to act after seeing acquaintances earn profits. 17-year-old high school freshman Kim invests over half the allowance he receives from parents and grandparents in stocks. He checks the price movements of Samsung Electronics and other holdings daily, a routine that began after encountering stock discussions on online communities. Kim stated that discussing which stocks to buy and which might rise has become a daily topic among friends.
Industry Warns Against Chasing Rallies Amid Volatility
An industry official emphasized that investors swept up in the frenzy who make hasty investments or enter the market targeting short-term gains risk significant losses. The official stated that investment strategies must consider corporate value and long-term growth potential, and investors must remain aware that the stock market can undergo corrections at any time.
FAQ
How many new stock accounts did elderly investors open compared to younger groups?
The 60-and-over age group opened 152,676 new accounts at three domestic brokerages (Hana, KB, NH Investment & Securities), nearly matching the 20s group (155,625 accounts) and trailing by only 2,949 accounts.
What milestones did KOSPI break this year?
KOSPI broke 5000 on Jan 27, 6000 on Feb 25, 7000 on May 6, 8000 on May 26, and 9000 on June 18.
Why did elderly and teen investors enter the stock market?
Elderly investors cited anxiety over low bank interest rates for retirement and fear of missing the bull run after seeing acquaintances profit. Teen investors entered using allowance money and discuss stock picks daily with peers, treating investing as a learning process.
