Korean youth are abandoning domestic stocks, flocking to American stocks and cryptocurrencies.

An increasing number of young investors in South Korea are withdrawing from the domestic stock market to shift towards US stocks and digital assets. According to a recent report, the percentage of young investors still active on the domestic exchange is sharply declining, causing mixed reactions within the South Korean financial community.

Data from the Korea Securities Depository shows that the percentage of investors aged 20 and 30 active in the domestic market has significantly decreased – from 14.9% and 20.9% to 11% and 19.4%. A 20-year-old employee shared that he has never invested in the Kospi index because it “doesn’t seem profitable.”

This perspective is not unique. Many young South Koreans are choosing to withdraw their investments from domestic companies to focus on US stocks and digital assets. Mr. Heo In-sung, a 30-something employee, stated: “I am gradually building a portfolio of US stocks” and mentioned that he is slowly moving away from Korean stocks like Samsung Electronics or Kakao.

The shareholding rate of domestic stocks among young people hits a low

The investment rate in the domestic market by South Korean investors in their 20s and 30s has now dropped to a record low – only 9.8% and 18.8%, respectively. The stock ownership rate has also plummeted: the 30-year-old age group held 9.9% of the listed stocks in Korea in 2020, but by 2024 it had dropped to just 7%. For the 20-year-old group, the rate decreased from 2.2% to only 1.6%.

Not only young people, but even the group of investors in their 40s – who are the core force of the Korean stock market – are gradually withdrawing from the game. Their ownership rate decreased from 23% in 2021 to 22.1% in 2024. Meanwhile, the group over 50 years old has significantly increased its market share, currently holding up to 70.9% of the domestic shares.

According to Ms. Hwang Se-Yoon, a senior expert at the Korea Capital Market Institute, this trend is very concerning. “If the younger generation continues to withdraw, trading activity will decline, leading to weakened market liquidity,” she warned.

Crypto becomes an alternative option

While young investors seem indifferent to the domestic stock market, the digital asset market has witnessed a surge. According to the South Korean Financial Services Commission, by the end of last year, about 48.7% of cryptocurrency investors were aged 20-30. Their total trading volume on 5 major exchanges exceeded 2,520 trillion won, accounting for 79% of the total trading value of 34,000 trillion won on the Kospi exchange.

An insider source at the brokerage firm revealed: “It is now implicitly understood in the industry that Bitcoin and other cryptocurrencies are siphoning off retail money from the stock market.”

According to statistics, there are more than 700,000 foreign investors holding shares in NH Investment & Securities – of which 56% are aged 30-40. In contrast, only 13% of Kospi 200 investors are in their 30s, while 57% are aged 50 and above.

U.S. stocks become the new “promised land”

The trading volume of foreign stocks by South Korean investors has nearly doubled in 2023 – from 59.3 billion shares (2022) to 112.4 billion shares. In 2024, the figure continues to rise by 39%, reaching 156 billion shares – according to data from the Financial Supervisory Commission (FSS) and 9 securities companies, cited by Congressman Kim Hyun-Jung.

This trend continues this year. In the first quarter of 2025 alone, South Korean investors traded a total of 10.9 billion USD in the U.S. market – despite the market’s adjustment.

The term “eoljookmi” (얼죽미) – means “no matter what, you must invest in American stocks” (the original meaning is Even if it’s cold, you must be fashionable) – is becoming a popular slogan among the youth. Their goal is not financial patriotism, but rather optimizing income in the context of the South Korean stock market which has been sluggish since the COVID-19 pandemic.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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Thach Sanh

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