Even the MZ Generation... "The Most Preferred Future Investment is 'Real Estate'"

FKI Awareness Survey Ranks 1st with 36.1%

Data provided by the Federation of Korean Industries

[Asia Economy Reporter Kim Heung-soon] A survey has revealed that the MZ generation (Millennials + Generation Z) also prefers real estate as the most favored means of future financial investment.

The Federation of Korean Industries (FKI) announced on the 22nd that, based on a survey conducted by the polling agency Mono Research targeting 700 domestic MZ generation individuals, 36.1% of all respondents selected 'real estate' as the most necessary financial investment method for future asset growth. Regarding virtual assets, 43.7% responded that they are speculative instruments without substance, while 46.5% (34.9% for investment + 11.6% as alternative payment methods) believed they have substance, indicating a divided perception of the value of virtual assets among the MZ generation.

Current Financial Investments Are Savings and Deposits; Future Investments Favor Real Estate

The financial investment methods most commonly used by the MZ generation currently are savings and deposits (37.5%), stocks (33.0%), virtual assets (10.3%), and real estate (9.8%) in that order. When asked about the most important financial investment method for future asset growth, the order was real estate, followed by stocks (32.4%), virtual assets (13.1%), and savings and deposits (8.0%).

The FKI explained that although the MZ generation currently cannot invest in real estate due to the rapid rise in real estate prices and economic constraints, they consider real estate the most important financial investment method for future asset growth.

Among the surveyed MZ generation, only 40.5% reported having experience investing in virtual assets, which is less than half. Of those with investment experience, 38.0% had invested for less than 1 to 6 months, and 35.5% for 6 months to less than 1 year, indicating that most are novice investors who recently entered the market. This is interpreted as many MZ generation individuals having jumped into investment following the cryptocurrency boom that began last year.

Regarding investment scale, 31.4% invested less than 1 million KRW, and 31.1% invested between 1 million and less than 5 million KRW, meaning small-scale investments under 5 million KRW accounted for 62.5%. Additionally, 2.8% of the MZ generation surveyed invested more than 100 million KRW in virtual assets.

Data provided by the Federation of Korean Industries

"Virtual Assets Are Speculation" VS "Investment and Alternative Payment Methods" Neck and Neck
"Alternatives Needed for Quality Youth Jobs to Prevent Overfocus on Investment"

Regarding virtual assets, 34.9% responded that they are an 'investment method for asset growth,' and 11.6% said they are an 'alternative payment method.' On the other hand, 43.7% responded that virtual assets are 'speculative instruments without substance.'

The main reason for investing in virtual assets was 'difficulty in growing assets through earned income alone,' at 49.3%. The FKI pointed out that this reflects the MZ generation's frustration due to youth employment difficulties and the recent surge in real estate prices. Other reasons included 'many people around me profited' (15.0%), 'expectation of high returns from small investments' (13.4%), and 'high entry barriers for real estate and stocks due to price increases' (11.2%).

Regarding what is needed for virtual assets like Bitcoin to be recognized as appropriate investment methods, respondents cited 'establishment of financial authorities' management and supervision systems' (30.9%), 'provision of investor protection measures such as compensation systems' (22.0%), 'enhancement of transparency including exchange operations' (19.3%), and 'clarification of the government's stance on the legal status of virtual assets' (11.3%).

Yoo Hwan-ik, Director of Corporate Policy at the FKI, emphasized, "Measures to create quality youth jobs are urgently needed so that the MZ generation does not become overly fixated on real estate or virtual assets." He added, "Labor regulations should be improved to enhance companies' ability to hire young people, and an environment conducive to job creation should be established through the discovery of new industries and fostering of venture companies."