"Japan Sees Through It: The Real Reason Behind Korean Youths' Stock Obsession"

Japanese Media: "Impossible to Buy a House with Only Salary and Loans"

Stocks Top List as "Most Advantageous Investment," Surpassing Real Estate

3.7 Trillion Won in Homes Purchased with Stock and Bond Sales, 65% in Seoul

Japanese media have reported that soaring housing prices and widening asset gaps in South Korea are driving young people to invest in stocks.

A Japanese report stated that "According to a Gallup Korea survey, stocks recorded 31%, surpassing real estate (23%) to rank first for the first time as the most favorable asset management method." Getty Images

According to the online edition of the Japanese weekly magazine Bunshun (Bungeishunju) on July 10, the outlet highlighted the stock investment craze among young people in South Korea amid surging real estate prices. Citing an executive from a Korean economic daily, it reported, "The younger generation has realized that, with only their salaries and mortgage loans, it is impossible to buy a home over the course of a lifetime."

Bunshun analyzed, "Since the inauguration of the Lee Jaemyung administration, the Korean stock market has been soaring, backed by political stability and a boom in the semiconductor industry." The outlet added, "Foreign investors who left Korea after martial law are returning, and the surge in semiconductor demand driven by the artificial intelligence (AI) boom is fueling the market rally." It further explained, "Samsung Electronics and SK hynix, which together account for more than half of KOSPI's market capitalization, are leading the bull market, and the performance bonuses for employees of these two companies have also increased significantly."

The outlet stated, "In a Gallup Korea survey, stocks were chosen as the 'most favorable investment method' by 31% of respondents, surpassing real estate (23%) for the first time, and marking the beginning of a full-fledged stock investment boom since the COVID-19 pandemic."

A citizen is passing by a real estate agency in Gangnam-gu, Seoul. Photo by Yonhap News.

The outlet cited high housing prices as a key factor behind this phenomenon. Bunshun quoted a Seoul citizen as saying, "Apartment prices are so high that it is difficult even to take the first step in investing, and even those who already own apartments are unable to make additional purchases due to regulations."

Asset inequality is also fueling the craze. The outlet pointed out, "Terms like 'dad's chance' and 'gold spoon/earth spoon' have become popular, reflecting widening social gaps." It went on, "Those who grew up in lower-middle-class households cannot afford a home, nor can they afford to date, marry, or have children." The article explained, "Stocks have become a magic wand that can dramatically change one's life."

"For Apartment Purchases, People in Their 30s Cite 'Stocks' as the Source of Funds"

Bunshun reported that among people in their 30s recently buying apartments, more are citing stock investment profits as their source of funds. The outlet stated, "Most people list stocks as the source. Alongside salaries and loans, money earned from stocks is being used to purchase the apartments they have long desired."

In fact, according to data received from the Ministry of Land, Infrastructure and Transport by Kim Jongyang, a member of the National Assembly Land, Infrastructure and Transport Committee, funds from the sale of stocks and bonds used for home purchases from January to April this year totaled 3.7255 trillion won. Of this, 2.4396 trillion won, or 65.5%, was used for home purchases in Seoul. By age group, people in their 30s accounted for the largest share, at 1.2592 trillion won. The proportion of proceeds from stock and bond sales used for purchasing high-end homes priced at 1.5 billion won or more hovered between 3% and 4% from 2020 to 2025, but in April this year, it jumped to 13.2%, reaching double digits for the first time.

The view of the apartment complex around Dongtan Station in Hwaseong City, Gyeonggi Province, on the 30th of last month. The Samsung Electronics Hwaseong Campus can be seen behind the apartment complex. Photo by Yonhap News Agency

Lending regulations have also encouraged this shift. Last year's June 27 policy limited mortgage loan amounts to a maximum of 600 million won, leading to increased demand for selling relatively liquid stocks to cover insufficient funds. In fact, according to the Ministry of Land, Infrastructure and Transport, the share of funds from stock and bond sales used for home purchases in Seoul rose from 3.47% in July last year, when the KOSPI was at 3,000, to 4.91% in October, when the KOSPI surpassed 4,000.

Bunshun also raised concerns about the current investment craze. The outlet noted, "The only stocks rising in the market are Samsung Electronics and SK hynix. Although semiconductors are currently in a supercycle, a downturn is certain to follow." Nevertheless, it pointed out, "Despite this, young people in South Korea, who lack other means to buy a home, continue to trade stocks each day."

This content was produced with the assistance of AI translation services.