Young rookie investors making profits on S. Korean equity market
Updated: 2021-02-23 15:19:45 KST
Instead of watching cartoons in the morning, this 12-year-old checks the business news and stock markets.
South Korean schoolkid Kwon Joon has been doing this since picking up a new hobby last year, stock trading.
After coming across some market news, he pestered his mother to open a trading account, using the cash he had saved as seed money.
In just under a year, he was up a stellar 43 percent, leaving him around 22-thousand U.S. dollars in profit.
"When I used to just save up my allowance, I had no particular interest in money or the economy because it was not like the money grew a lot. But as I started to invest in stocks, I could clearly see it growing like a snowball and it's been a great opportunity for me to learn more about the economy."
"In fact, he is just one of many young newcomers to the South Korean equity market. Just last year, almost half-a-million under-18s opened stock accounts. That's more than the number of new accounts made by under-18s in the previous five years combined."
This has been brought about by changing perceptions about the stock market.
With almost zero-percent interest rates on bank deposits and a much higher rate of return for stocks, more people are turning to the stock market in the belief that simply sticking their savings in a bank is no longer enough.
"Now if you look at interest rate environment, if you put money into deposit, its less than one percent so even you deposit all your earnings for the next 30 years, you won't be able to buy a house. That's kind of depressing but I think that's the trend. So in order to accumulate wealth, the best way is to buy equities."
And some have taken this trend further to even give stock as an allowance for kids,
like this woman who recently bought some promising stocks for her young nephew and niece.
"I think it's difficult for children to handle cash, and because the stock market has been booming lately, I thought it'd be better to give them stocks that can grow over time."
When her nephew and niece grow a bit older, she plans to teach them how to choose items and make investments themselves, to help them broaden their perspective and gain an interest in the economy from an early age.
Kim Sung-min, Arirang News