In early May, as the Korea Composite Stock Price Index (KOSPI) first breached the 7,000-point threshold, the nation erupted in excitement. As the index climbed, the topics of everyday conversation shifted. Where Koreans once inquired about children, housing, and health, a new question has emerged: "What stocks have you bought?" Within ordinary households, the older generation monitors shipbuilding, defense, and energy stocks—sectors tied to the manufacturing industries they know well. The younger generation increasingly tracks ETFs, focusing on global markets and long-term portfolio allocation. Even children's holiday gifts have become stock accounts.
This bull market is attributed to the surge in semiconductor demand fueled by the artificial intelligence boom, with share prices of Samsung Electronics and SK Hynix repeatedly hitting new highs. Addressing the longstanding issue of the "Korea Discount"—the persistent undervaluation of Korean equities relative to international averages—the Lee Jae-myung administration has rolled out a series of systemic reform measures. These aim to rebuild market confidence by boosting the stock market, protecting small investor rights, and improving corporate governance. The rise of the Korean stock market carries added significance: it is seen as another outlet for assets beyond real estate. Simultaneously, it casts a stark light on public anxiety. It's not a sudden infatuation with stocks; rather, under the mounting pressures of housing prices, inflation, retirement costs, and stagnant wages, the stock market has become one of the few places where people can imagine a "next step." As the entire nation watches the same curve, the bull market not only fuels wealth fantasies but also ties more people's livelihoods to market volatility.
Professor Kim Sang-bong from the Department of Economics at Hansung University in Seoul suggests that the upward momentum of the Korean stock market, supported by the semiconductor industry, will likely continue but with significant volatility. The market could face minor shocks or experience major swings. He cautions, "Once the upward momentum weakens, losses for those trading on borrowed money could expand."
The phrase "What stocks have you bought?" has become a common greeting. In an apartment complex in Seoul's Songpa District, shortly after 9 a.m., conversations in the elevator grow quiet. At this time, 37-year-old Na Jin has just dropped her two children off at kindergarten. Neighbors who used to exchange pleasantries in the elevator now act differently. After the market opens, everyone looks down, fingers swiping across phone screens: checking gains and losses, monitoring account returns, afraid to miss the most intense volatility right after the opening bell. Not long ago, Na opened a securities account and also opened separate accounts in her children's names. In South Korea, stocks have become one of the best Children's Day gifts. Over two decades ago, Korean parents would open a bank passbook for their child to deposit New Year's money. Today, passbooks have given way to securities accounts. Children have accounts before they learn to read financial statements.
A survey by a Korean English education company revealed that "financial assets like cash and stocks" (30.8%) have surpassed "gaming devices" (30.0%) to rank fourth on the list of popular Children's Day gifts, behind only "clothing, footwear, and miscellaneous goods" (72.7%), "dolls and other toys" (44.4%), and "sports equipment like bicycles" (34.2%). Among the various "stock gifts," Samsung Electronics is the most popular. Data from KB Securities shows that in April, among stocks gifted to minors under 18, Samsung Electronics ranked first with a 56.3% share. According to Shinhan Investment & Securities, the number of new accounts opened by minor clients in the first quarter of this year increased by 272% compared to the same period last year.
It's not just children; seniors are also diving in. Park Hyun, a 67-year-old retiree, spends his days watching stock programs so he can recommend more stocks to friends and family. Every time he meets relatives, he exchanges views on holdings. Recently, while waiting in line at a supermarket, he overheard a couple ahead discussing a stock he owns and couldn't resist joining the conversation. In Seoul's Tapgol Park in Jongno District, "KOSPI 7000" has become part of seniors' casual chats. "Thanks to these two stocks recently, the returns have been good," they say, sitting in small groups, heatedly discussing the market. For seniors with limited income, stocks are both a pastime and a hope for supplemental cash flow.
One could say the stock market has changed the rhythm of a Korean's day. This is especially true since the launch of South Korea's first alternative trading system, Nextrade, which extended trading hours from 8 a.m. to 8 p.m. and offered lower fees. In contrast, the regular trading hours on the traditional Korea Exchange run from 9 a.m. to 3:30 p.m. Jun-hee, 41, commutes about an hour each way from Seoul's Seongbuk District to Bundang in Gyeonggi Province for work. He used to use this time to nap or watch videos but now says, "It's a waste not to use it for trading." Before the official market open, he checks the overall trend via Nextrade and makes short-term trades. "On the subway, you often see office workers like me, staring at charts, fingers constantly swiping," Jun-hee says.
In the employee restroom of a department store in Seoul's Gangnam District, stalls are consistently full at 3:30 p.m. as staff rush to check stock apps at the closing time. Soo-hyun, 31, has carried over habits from the cryptocurrency market into stock trading. Previously investing in crypto, he was accustomed to watching the markets all night. Now, even if he doesn't execute trades during regular hours, he continues observing until 8 p.m. to re-price and place orders.
This fervor has spread to bookstores. Data from the cultural content platform Yes24 shows that as of May 6 this year, sales of stock-related books in South Korea surged by 305% compared to the same period last year. Titles like "Gemini Stock Investment," "AI Bubble, Semiconductor Practical Investment Method," and "The Soaring Rules for Everyone to Find Rising Stocks" have made the lists. Oh Da-eun, a planning editor in Yes24's economics and management division, notes, "In the 'KOSPI 7000' era, public interest in investment shows a clear trend. People aren't stopping at a temporary frenzy but are extending it into systematic economic learning and committing to long-term asset management strategies."
A "fear of missing out" is spreading through Korean society—"If I miss this opportunity, will I remain poor forever?" According to data compiled by Toss Securities, new account openings by those under 18 in the first quarter of this year skyrocketed nearly tenfold year-over-year. Data from the Korea Financial Investment Association shows that as of May 4, the number of active stock trading accounts in South Korea reached 105 million. It's worth noting that South Korea's total population is less than 52 million.
As KOSPI continuously sets new highs, some have quit their jobs to trade full-time. Ji-eun, 32, was a violinist. She attended arts middle and high schools, studied at a music university, and even studied abroad in France. For over two decades, her life followed the path of music. But now, she has embraced a new identity—a full-time investor. "During the pandemic, I made a lot of money from the stock market rise. Recently, with KOSPI continuously hitting new all-time highs, I'm convinced switching to full-time investing was the right choice," she says.
Full-time investing isn't just sitting in a café looking at a phone. Every day at 6 a.m., she first checks U.S. market conditions, confirms major economic indicators and news for her holdings, and then trades in sync with the Korean market open. After the close, she continues watching the U.S. markets. Ji-eun recently had a baby and jokes, "Even the day before giving birth, I checked the market whenever I had a moment."
Data from the platform under South Korea's largest search engine, Naver, shows that as of early May this year, searches for "full-time investing" increased about fivefold compared to a year ago. Since April, searches on Google for terms like "full-time investing" and "full-time investor" have also surged sharply. Tags like "full-time investing mom" and "full-time investor beginner" have appeared on popular Korean social platforms, and YouTube videos sharing full-time investment tips have garnered over a million views.
The Korean bull market is altering not just career paths but also young people's attitudes toward marriage and relationships. The joking remark, "Let's get married after I make big money in the stock market!" hits close to home for many young people. In the past, marriage in Korea was often hindered by housing prices, employment, and childcare costs. As KOSPI rises, some view the gains in their securities accounts as a ticket to marriage. KB Securities analyst Lee Eun-taek admits that rising stock prices bring not just investment returns but also stimulate optimism about the overall economy and risk appetite. "Compared to constant careful calculation, people only decide to marry and have children when they have confidence in the future."
Among those borrowing to chase gains, the elderly are increasing. Choi Woo-sik, 64, worked in commercial banking and now runs a café in Gyeonggi Province after retirement. In the past, he understood the weight of "risk" better than anyone. But recently, he's almost inseparable from his phone: watching KOSPI during the day, U.S. stocks in the early morning, with significantly reduced sleep. As KOSPI soared, Choi invested in leveraged products tracking twice the index's movement. Judging U.S. stocks to be overheated, he borrowed money to invest in a product offering three times the movement of the Philadelphia Semiconductor Index. Choi says this kind of investment was "unthinkable" high-risk during his banking days. "But people around me keep making big money. In comparison, the retirement savings in my account seem too meager."
As of the end of March this year, credit financing for those aged 60 and above in South Korea reached about 8 trillion won, an increase of over 4 trillion won from a year ago, the largest growth among all age groups. Those in their 50s had the highest financing amount, at approximately 8.97 trillion won.
The stock market's allure has even reached the military. On April 7, at an Air Force unit in Hwaseong, Gyeonggi Province, over 100 officers and soldiers sat through a lecture on loans, interest rates, credit records, and investment risks. Previously, some personnel had taken loans from lending companies to invest in stocks or other high-risk assets, sparking controversy. A survey released by South Korea's Financial Supervisory Service in March this year showed that as of the end of 2025, out of a total personal credit loan balance of about 2.7 trillion won, military personnel's borrowing balance amounted to 444 billion won, with over half from active-duty enlisted soldiers. It's reported that many personnel were attracted by online ads for "loyalty loans" or "sergeant loans," with loan amounts between 10 million and 15 million won and annual interest rates as high as 17.9% to 20%, nearing the legal maximum. During the lecture, financial experts cautioned young soldiers, "Military personnel just entering society, tempted by high-interest loans without a clear plan for the funds, could leave a fatal stain on their personal credit after discharge." As salaries rise, soldiers also need a certain level of financial knowledge.
The current surge in the Korean stock market has few precedents, domestically or globally. Before KOSPI broke 7,000, the Korean market was a place foreign capital hurriedly exited. After the U.S. President took office, intensified Sino-U.S. trade friction led global funds to reassess risks in Asian markets. South Korea, caught between semiconductors, export industries, and alliances, was seen as one of the most vulnerable countries. From 2024 to 2025, foreign investors were net sellers of Korean stocks for consecutive years, making "selling Korea" a market catchphrase. Sudden political turmoil delivered another blow. After the events of December 3, 2024, the Korean stock market began shouldering the "Korea Discount" burden. On April 2, 2025, the announcement of a tariff policy by the U.S. administration put pressure on export-reliant South Korea again, with KOSPI once falling below 2,300 points.
The reversal began after this round of selling. Previously oversold Korean assets re-entered the global view as political risks eased, the semiconductor cycle recovered, and capital market reforms progressed. Starting in May 2025, foreign capital gradually began flowing back, and the Korean market shifted from "abandoned" to being repriced. The true heroes pushing the index higher were the "semiconductor powerhouses," Samsung Electronics and SK Hynix. Samsung Electronics thus joined the "trillion-dollar market cap club," becoming Asia's second most valuable company; SK Hynix broke the 1.6 million won per share barrier.
"The perspective of global investors is shifting from 'Korea Discount' to 'value reassessment,'" said Li Bing, President for Asia Pacific at Bloomberg. He stated that South Korea's leading position in AI, semiconductors, and advanced manufacturing, combined with corporate governance reforms, "forms a compelling investment case." To protect minority shareholder interests, the Lee Jae-myung administration pushed through an amendment to the Commercial Act, enshrining directors' fiduciary duties to shareholders, checks on major shareholders, and treasury stock cancellation into law.
Consequently, SK Hynix announced a 14 trillion won shareholder return program, and Samsung Electronics declared a 6.1 trillion won treasury share buyback and a 3.8 trillion won cash dividend. "Overseas investors' trust in the Korean market is improving after confirming tangible changes like increased dividends and treasury stock cancellations," Li Bing commented.
As president, Lee Jae-myung frames the stock market as a larger national-level "project." He coined the slogan to move from "Korea Discount" to "Korea Premium" and declared the intent to "dismantle the ruinous real estate republic." "In the past, real estate was the only investment method. Now, an alternative has emerged: stocks. The government will encourage people to shift from thinking only about buying land and buildings to the stock market as a useful financial asset," Lee said. He also shared his story as a retail investor, calling himself a "dormant retail investor." After losing the 2022 presidential election, he researched and bought some shipbuilding stocks but later sold them at a loss due to criticism after becoming a lawmaker. "Those stocks have now tripled or more," he noted. "If I leave politics, the possibility of me returning to the stock market is 99.9%," he added.
In February this year, Lee Jae-myung and his wife, Kim Hye-kyung, listed their apartment in Bundang, Seongnam, Gyeonggi Province, for sale through a real estate agent, with an asking price of about 2.9 billion won, slightly below the current market range of 3.1 to 3.2 billion won. The property was purchased in 1998 for approximately 360 million won, covers 164 square meters, and has been held for nearly 30 years. Lee's property sale wasn't merely an asset adjustment but intended to demonstrate to the public his firm resolve to normalize the real estate market. A presidential office source revealed, "The proceeds from Lee Jae-myung's home sale, if invested in index funds or other financial investments, would create greater economic benefits."
With KOSPI breaking 7,000, optimism runs high within the ruling Democratic Party of Korea. Lawmaker Han Byung-do stated that domestic and foreign investors have placed trust in the Lee Jae-myung administration's "consistently pursued capital market advancement policies." Lawmaker Jeon Hyun-hee went further, saying, "The era where the stock market becomes the core of national assets has opened. The era where every citizen can participate in asset formation has arrived."
After 7,000, the Korean market has set its sights on 8,000 points and beyond. However, the closer to a new milestone, the more variables can emerge. On May 12, KOSPI began falling after approaching 8,000. For investors, this wasn't unexpected. Yonhap News described the day's movement as "catching its breath" after a short-term rapid rise. "On one hand, KOSPI took a very short time to go from breaking 7,000 to nearing 8,000, building profit-taking pressure in semiconductor stocks. On the other hand, foreign investors were net sellers of over 5.6 trillion won in the KOSPI market, becoming a key driver of the index's turn. Additionally, escalating geopolitical risks in the Middle East added a layer of unease to the high market," the report noted.
By May 15, KOSPI briefly touched the 8,000-point milestone before turning downward, falling over 6% in a single day. Affected by the sharp volatility, KOSPI triggered a "circuit breaker" mechanism for sellers. The tech sector bore the brunt, with net outflows exceeding $2.5 billion. Another notable factor comes from policy signals. On May 11, Kim Yong-bum, head of the Presidential Office's Policy Office, proposed the concept of "national dividend funds," aiming to institutionalize returns from "excess profits" generated by the expansion of industries like AI and semiconductors through taxes or other forms. For the Korean stock market, which has risen on the back of these very industries, this statement was poorly timed. Investors worried the government might tap into AI and semiconductor industry profits, leading related sectors to weaken.
Margin trading, colloquially known as "borrowing to buy stocks," has also raised external concerns. Data from the Korea Financial Investment Association shows that as of mid-April, the balance of margin trading had reached 34 trillion won, approximately double the figure from the same period last year. While margin trading is a mature business itself, the point of concern in Korea is that some retail investors use funds borrowed from banks and credit card companies for stock trading. In March this year, the Financial Supervisory Service issued instructions urging securities firms to "exercise restraint in the competition for clients." The agency warned against inducing investors into margin trading through methods like lowering commission fees or excessive advertising. FSS Governor Lee Chan-jin pointed out, "Young investors in their 20s and 30s are suffering continuous economic losses and heavy debt burdens due to these activities."
Another practical issue has surfaced: Has the stock market rise truly changed ordinary people's lives? Choi Woo-sik currently has 200 million won in savings and an apartment. Hearing news of the stock surge, he invested 30 million won into the market, earning about 5 million won. But he doesn't dare spend that money immediately. A few months ago, his café's rent increased. After a conflict in the Middle East erupted, prices for beverages and baking ingredients in his shop also rose. After making money, he just took his family out for a meal, then put the remaining funds into a checking account, thinking, "I'll invest more when the stock price falls." Another portion of stock gains is flowing back into the real estate market. Min-jun, an office worker in his 40s, previously bought an apartment in Yongsan and was worried about the final payment. Recently, stock market gains刚好 covered the shortfall. Data from the Bank of Korea shows that in Seoul, the proportion of home purchase funds coming from the sale of stocks and bonds rose from 4.9% in May last year to 8.9% in January this year.
However, stocks do not constitute a large portion of Korean household asset structures. As of 2024, the scale of individual stock assets in South Korea was equivalent to about 77% of disposable income, far below the U.S.'s 256% and major European countries' 184%. In overall Korean household assets, the stock holding proportion is only about 7%. More crucially, stock assets are concentrated among high-income groups, with the top 20% of households by assets holding over 70% of total stock assets.
This bull market has also not transformed into the anticipated nationwide consumption boom. Kwak Beom-jun, head of the Macro Analysis Group at the Bank of Korea, believes that for stock price gains to translate into consumption, housing prices must be stabilized to prevent excessive capital flow into the property market. Simultaneously, a stable household investment environment must be fostered to increase motivation for long-term stock holding. A commentary in The Seoul News stated that the chasm is widening between the prosperity of financial markets and the chill of the real economy felt by ordinary people. "The warm current brought by semiconductor prosperity has not yet reached the lives of ordinary citizens struggling under the heavy pressure of high prices."
Compared to whether KOSPI can break 8,000, ordinary Koreans are more concerned with whether the gains in the stock market can translate into breathing room in daily life. Can the returns in their accounts offset anxieties over rent, prices, and retirement? The names Na Jin, Park Hyun, Jun-hee, Soo-hyun, Choi Woo-sik, and Min-jun in the article are pseudonyms.
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