South Korea's stock market is undergoing a historic rally, attracting a surge of new, often novice, individual investors. The number of stock owners in South Korea dramatically increased from approximately 6 million in 2019 to over 14.5 million by the end of 2025. This figure has likely grown further, considering the benchmark Kospi index has almost doubled in value in the last six months, making it the top-performing major index globally. As of May, there were 105.22 million active stock trading accounts, an increase of 6.93 million since the end of last year.
This boom marks a significant reversal for South Korea's market, which was previously seen as underperforming due to issues like the family-run "chaebol" system and low shareholder returns. President Lee Jae-myung, a former day trader, campaigned on a promise to boost the Kospi to 5,000 points, a target it surpassed in January. His administration has introduced reforms to protect minority shareholders and attract investment. However, the market's strong performance is largely attributed to a global shortage of memory chips, fueling demand for products from companies like Samsung Electronics and SK Hynix, which have both achieved market capitalizations of at least $1 trillion due to record profits.
The investment frenzy has extended to underage individuals, with cases like K-Pop idol Han Yujin, who turned 1 million won (approximately $664) from his father into 80 million won (approximately $53,037) at age 14, an 8,000% return. This has drawn attention to the "child investment" trend. New stock account openings for children aged 0-9 surged by 119.2% from January to May, surpassing the 101.1% growth for teenagers. Samsung Electronics is the most popular stock gifted to minors, accounting for 56.3% of such transactions, followed by Kakao (6.1%) and HLB (3.7%). Lawmakers are considering policies like the "Woori Child Independence Fund" and "Junior ISA" to provide financial support for children from birth to adulthood. Concerns exist about potential widening wealth inequality and the need for sound economic education alongside investment opportunities.
