"If Not Now, You Can't Buy Samjeon Stocks" 20s and 30s in the Midst of the 'Donghak Ant Movement'

Number of Stock Trading Accounts Surpasses 30 Million for the First Time on the 6th
Stock-Investing 20s and 30s Say "Income Is Unstable and No Home... Anxious About Retirement"
"Feeling Helpless Due to Uncertain Future and Job Market... See Stock Market as an Escape"

On the 19th, an employee was walking back and forth in front of the stock market status board at the KB Kookmin Bank dealing room in Yeouido, Yeongdeungpo-gu, Seoul. / Photo by Yonhap News

[Asia Economy reporters Seunggon Han and intern Juhyung Lim] #Office worker A (29) has recently been considering investing in stocks. This is because people around him say that now, when the stock market has plummeted sharply due to fears of the novel coronavirus infection (COVID-19), is the 'right time to buy.' A said, "If not now, the day our generation can buy Samsung Electronics stock will never come," adding, "Income is unstable, and I don't even own a house, so I feel anxious about whether I should at least invest in stocks to prepare for retirement."

Amid the impact of COVID-19, the KOSPI index fell from the 2200 level last month to the 1600 level as of the 24th, and the number of people in their 20s and 30s who see the crash as an opportunity to make a fortune is increasing. They are pouring their savings into stocks and are even known to be opening overdraft accounts to invest.

According to the Korea Financial Investment Association on the 18th, the total number of stock trading activity accounts reached 30,238,046 as of the previous day, steadily increasing after surpassing 30 million for the first time on the 6th. Some securities firms estimated that 60% of the newly opened accounts last month were by customers in their 20s and 30s.

The number of people borrowing money to invest in stocks is also rising. According to statistics from the Korea Financial Investment Association, the balance of credit transactions (the amount investors borrowed from securities firms to buy stocks) was 9.2133 trillion won at the end of last year and increased by more than 1 trillion won to 10.3726 trillion won last month in just over two months.

Although the balance decreased as the crash continued, its proportion relative to the total market capitalization of the KOSPI market has rather increased. This indicates that many individual investors are still holding on with the belief that large-cap stocks will rebound someday.

Some netizens referred to the situation where individual investors buy stocks after foreign and overseas investors exit the stock market as the "Donghak Ant Movement," a newly coined term. / Photo by Internet Community Capture

As a result, a new term called the 'Donghak Ant Movement' has become popular among some netizens. It refers to the situation where individual investors are buying stocks and defending stock prices while foreigners and institutions continue to sell.

One netizen wrote in a stock investment community, "When the KOSPI index fell into hell, Samsung Electronics always held firm. Please have faith," and appealed, "If this Donghak Ant Movement succeeds and personal funds flood into stocks, house prices will fall, which will also help the common people's economy."

Regarding the increase in people in their 20s and 30s investing in stocks despite the unstable financial market, office worker B (32) said, "Because there is no suitable alternative for our generation."

B explained, "This is not an era where you can steadily save money and buy your own house like in the past. You have to do something. I used to have a reluctance to invest in stocks when I was young, but as I increased 1 million won or 2 million won, I naturally focused on this."

On the 23rd, the KOSPI, KOSDAQ, and exchange rates after the market closed were displayed on the electronic board in the KB Kookmin Bank dealing room in Yeouido. / Photo by Yonhap News

C, who is investing in equity funds, said, "I think inexperienced investors tend to take stocks lightly. Real estate is too expensive for ordinary people to even consider, and cryptocurrencies are too volatile, but there is a belief that the stock market is more predictable."

Experts diagnose that herd mentality may have triggered this stock fever.

Professor Kumju Kwak of the Department of Psychology at Seoul National University explained, "Even without a clear investment purpose, people may jump into the stock market out of anxiety, wondering 'Am I the only one being left out?'" and added, "It is a psychological fear that if you do nothing now and later the stock price rises and people around you make a lot of money, you will regret it."

He continued, "Especially in Korea, many people have made huge profits through investments such as real estate during decades of rapid growth," and pointed out, "The current 20s generation may see stock investment as an escape from feelings of helplessness caused by an unstable future and employment difficulties."