SOUTH KOREA: In Seoul, a new financial revolution is quietly taking shape, led by a generation determined to chart their economic course.
At the forefront of this movement is Choi Hui-ji, a 26-year-old business consultant with a bold ambition — to save 70% of her monthly earnings. Her strategy? Investing half of her savings in overseas exchange-traded funds (ETFs), with her sights set on owning a home, income-generating real estate, and securing a comfortable retirement.
According to what she shared with SCMP, Choi’s approach is rooted in a simple yet powerful insight — the earlier you start saving, the more your money can grow.
“Saving just 100,000 won (US$75) a month in your teens can grow to a much larger amount than saving 200,000 or 300,000 a month in your thirties,” she explains. Her message is clear — consistent, early savings, even in small amounts, can be the key to financial peace of mind.
South Korea’s young investors
Choi is not alone in her quest. Across South Korea, young people are turning to investment as a lifeline, a way to climb the economic ladder in a society where traditional savings alone may not suffice.
Social media is abuzz with stories of young Koreans saving 100 million won in their twenties, inspiring a wave of interest and participation.
Lee Woo-jae, a 29-year-old IT professional, echoes this sentiment. “I realized that simply relying on regular income wouldn’t be enough to afford a home in Seoul. I needed to invest to accumulate wealth,” he says.
Yun, a 28-year-old office worker, agrees: “Everyone is just trying to find a way to grow their small salaries somehow.”
This surge in young investors is not just a passing trend. It’s a noteworthy shift that has caught the attention of economists like Han Young-sup, who sees it as an unexpected yet significant trend. “The large-scale entry of younger people into the asset market is an unexpected and noteworthy trend,” he observes.
The driving force
But what drives this newfound interest in investment? For many, it’s a sense of anxiety about the future, a desire to prepare for retirement in a world where pensions may not be enough.
“I’m less focused on becoming rich and more on preparing for retirement,” says Ji Hyeon-seong, a 29-year-old office worker. “With concerns about pensions running out, and knowing that I can’t rely on earned income forever, I feel it’s important to start investing while I’m still young and capable.”
The government, too, is playing a role, lowering barriers to investment with tax benefits and retail-investor-exclusive treasury bonds.
This contrasts sharply with the past, when high minimum investment requirements and limited tax-free options made investing the preserve of the wealthy.
YouTube-fuelled investors
Despite the growing interest, many young Koreans admit they lack sufficient financial knowledge, often relying on advice from YouTube or peers. This has led some to speculate, seeking high returns in the short term, a trend that has raised concerns about financial stability.
Han points out the divisions among young people: those who can invest extra money in assets, those who cannot, and those who feel stuck in between.
“The most fundamental principle in any investment is understanding that there’s always a risk,” he emphasizes. “Without a financial buffer, many end up resorting to risky, short-term trading.”
Yet, despite these challenges, young Koreans are doing their best within the limited means available to them.
In a society where the survival-of-the-fittest mentality prevails, and where the older generation often dominates the conversation, this new generation of investors is carving out their own path, one small investment at a time.