[MZ Tech] ① Money Grows Exponentially from Flowerpots... The World of Siktech

Editor's NoteFinancial technology for the MZ generation (Millennials + Generation Z) is both an investment and a culture. While the goal is to make money, gaining attention among peers leads everyone to seek 'proof' of success. This is why resell tech (securing scarce items and reselling them at a premium) and fractional investment (multiple people investing together in one asset and sharing profits) have become popular. We explored the investment methods of the MZ generation, who approach financial technology with ingenious methods unimaginable to older generations.

Money sprouts from a potted plant every month. It’s not just a small amount. It’s enough to buy two shares of Samsung Electronics stock (closing price on February 3 was 63,800 KRW). This is how the MZ generation, armed not with a "just do it" but a "if it works, then do it" mindset, makes money with plants. This is called 'Siktecheu' (plant tech investment).

What is Siktecheu? ... "Buy one leaf, grow it, propagate it, cut it, and sell it"

[Photo source below=Pixabay]

Siktecheu is a portmanteau of 'sikmul' (plant) and 'jaetecheu' (financial technology). Those encountering the term for the first time often ask, "How can you make money with plants when you’re not even a florist?"

The structure is simple. Like any market economy, scarcity, supply, and demand determine prices and transactions. ① Buy rare plants cheaply, ② nurture them well to propagate multiple plants, then ③ cut some and resell them at a higher price.

Usually, Siktecheu starts with just one leaf. Over time, it becomes two, then four. This is the magic of compound interest emerging from a pot. Expected returns vary widely depending on initial investment and target profits, just like any other investment.

Beginners earn profits in just four months... Siktecheu is 'the magic of compound interest'

K (24), a university student interested in financial technology, came across videos about Siktecheu on YouTube early last year. To him, Siktecheu was "a healing financial technology that allows easy and comfortable pocket money earning."

The plant he chose was 'Monstera Albo.' It is almost impossible to propagate by seeds or tissue culture. Importing it is difficult due to quarantine regulations, and the profit-to-cost ratio is low. Its scarcity comes from the impossibility of mass production. Also, it has the highest trading volume in the rare foliage plant market, making it highly liquid. It is like the apartment in real estate or Bitcoin in cryptocurrency.

He bought two Monstera Albo leaves, a watering can, a soil moisture meter, and artificial lighting equipment from a popular online plant store. The total cost was just over 1 million KRW. Plant growth depends on light, temperature, moisture, and fertilizer. He learned when to water and fertilize through YouTube and internet searches. He heard that "unless you sprinkle salt on the pot, it won’t easily die," and indeed, that was true.

To make money, you ultimately have to sell to someone. The main market is major secondhand trading platforms. "If you check the prices over the past week and list at 80-90% of that price, it sells within two days." He said he sold one leaf last month for 120,000 KRW. New leaves that will bring profits in one or two months are growing rapidly.

Monthly profits of 20 million KRW: Advice from the 'Siktecheu legend'... "Split and sell as much as possible"

Recently, as the asset market has slowed, the Siktecheu market has also experienced some stagnation. Until the first half of last year, one Monstera Albo leaf traded for around 500,000 KRW, but now it is far less than half that. Managing returns is not easy at this point.

Park Seonho, a Siktecheu specialist YouTuber, has recorded monthly profits exceeding 20 million KRW. He published a book titled 'All About Siktecheu' in April last year, sharing his experiences. He also recommends Monstera Albo to beginners interested in Siktecheu. It is easy to grow, and realistically, it is difficult to start with plants that yield 1 million to 5 million KRW per leaf.

To increase returns, he advises, "Sell in the smallest possible units." For example, if five leaves sell for 1 million KRW, selling one leaf separately can fetch not 200,000 KRW but around 300,000 KRW.

The stock market adage "Buy at the knee, sell at the shoulder" is adapted in the Siktecheu market as "Buy in winter, sell in spring." Park said, "Winter is a difficult time even for experts to grow plants," so demand for plant purchases inevitably decreases. When spring comes, interest in plants rises again. Although nurseries release the plants they have grown, supply cannot keep up with demand. The price of foliage plants peaks in spring and falls in early winter, repeating this cycle.