The exodus of young investors in their 20s and 30s from the stock market is becoming more pronounced. Trading volume among this demographic at major brokerages has plummeted by over 60% since June. The number of stock investors in their 20s and 30s has also decreased by nearly 30%. Analysts suggest that the investment sentiment of these young investors, who had jumped on the stock trading bandwagon in the latter half of last year, has rapidly cooled as market volatility has persisted since June.
On the 31st, an analysis of customer trading data from Samsung, Hana, and Hyundai Motor Securities revealed that the trading volume of 20- and 30-something investors at these firms dropped from 114.15 trillion won in June to 85.32 trillion won in July, and further down to 41.70 trillion won in August. This marks a decrease of 72.45 trillion won (63.5%) from June to August.
The number of young stock investors has also significantly declined. The count of 20- and 30-something clients at the three brokerages fell from 684,144 in June to 576,842 in July, and then to 501,361 in August. Over the two months since June, the reduction amounts to 182,783 individuals (26.7%).
The proportion of young investors among all clients has either stagnated or decreased. According to one brokerage that provided age demographic data, the share of 20- and 30-something clients dropped from 23.16% at the end of last year to 22.70% as of August 26, a decline of 0.46 percentage points. Another brokerage reported a slight decrease from 32.55% to 32.40% during the same period.
Experts believe that the recent corrections and increased volatility in the domestic stock market have driven young investors away. The KOSPI index has been on a downward trend since reaching an all-time high of 9,114.55 on June 22. During this period, there were 25 trading days where the market experienced fluctuations of more than 4% in either direction. As market volatility has increased, the amount of capital waiting to be invested has also been steadily declining.
Baek Young-chan, head of the research center at Sangsangin Securities, stated, "As the domestic stock index continues to decline and undergo corrections, it is possible that some investors have cut their losses and exited the market or shifted their investments to overseas markets like the U.S."
* This article has been translated by AI.
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