"Proof That Ordinary People Like Us Can't Win"
More Than Half of Cryptocurrency Investors Are MZ Generation
Sensitivity to Fairness, but "Cryptocurrency and Stocks Are Also Unfair"
"Looking at the situation involving Assemblyman Kim Nam-guk and Soci?t? G?n?rale (SG) Securities, I feel nothing but emptiness. I am not angry. I thought it would be like this from the start. I believe that ordinary people like us cannot win in markets such as cryptocurrency and stocks, just like in real estate."
Young people in their 20s and 30s are feeling disillusioned and cynical in response to consecutive investment market disruptions such as the 'SG Securities stock price crash' and the 'Kim Nam-guk coin incident.' These individuals had viewed investment as an escape route for social advancement amid soaring housing prices and employment difficulties, investing in cryptocurrencies and stocks. However, they have become one of the generations to suffer the greatest losses in the investment market over recent years. Furthermore, they are growing increasingly angry as they realize that the cryptocurrency and stock markets they considered alternatives are ultimately markets favoring vested interests.
On the 21st, the 2030 generation interviewed by Asia Economy uniformly expressed cynical views toward the successive investment market disruptions. They responded that the investment market was a "tilted playing field" from the beginning and were not surprised. Hwang (31, male), an office worker, said, "I invested 20 million won in coins since 2021, but now it has halved. I was aiming for a windfall, but this is what happened." He added, "Seeing public officials and celebrities profit from insider information or market manipulation feels hollow. Isn't it a game we cannot win no matter what?" He continued, "I thought it would be like this from the start, and I think it will continue to be so. I am no longer even angry."
Kim (31, female), who works in the financial sector, also said, "Most of the victims of this incident are peers in their 20s and 30s. Rather than anger, I feel bewildered and speechless at such unfairness." She added, "As always, when you look behind the scenes, they are all eating among themselves. I think it was a tilted playing field from the beginning."
Particularly regarding Assemblyman Kim, the sense of disillusionment was greater because he is a politician of a similar age group. Kim (34, female), who works at a platform company, said, "It is not that members of the National Assembly cannot trade coins, but the fact that he made such huge profits raises questions about whether he traded with advanced knowledge as a high-ranking official." She added, "Moreover, seeing the continuous changes in his statements and reports that he traded coins during his legislative activities makes me think he is unfit to be a member of the National Assembly. It is also questionable where he obtained tens of billions of won for investment."
Especially, the extreme confrontation between the ruling and opposition parties over Assemblyman Kim’s investment issues adds to the disillusionment felt by the 2030 generation. Lee (26, female), who works at a large corporation, said, "I do not understand Assemblyman Kim’s explanations at all, and I lost more trust in politicians who argue over responsibility. It even made me distrust politics." She continued, "Seeing these incidents, I think ordinary employees like me would have lost everything because we cannot keep up with the level of information. Rather, my distrust of things like coins has only grown. I think it was good that I did not invest."
They are equally cynical about the SG incident, where the amount seized by the prosecution as investment gains reached 264.2 billion won. Park (25, female), a young worker, said, "I have some experience investing in stocks, but the trading methods mentioned in the SG Securities incident are very unfamiliar." She pointed out, "There are people claiming to be victims, but I question where the boundary and criteria lie between those harmed by manipulation and those who are perpetrators."
The disillusionment experienced by the 2030 generation is understood to stem from being one of the representative generations to lose money in recent investment markets. According to the office of Kim Han-jung of the Democratic Party of Korea, the market capitalization of virtual assets listed on the five major domestic virtual asset exchanges?Upbit, Bithumb, Korbit, Coinone, and Gopax?was 53.3 trillion won as of the end of June last year, down about 31 trillion won from the end of the previous year. Among the total 5.58 million domestic virtual asset investors, the MZ generation (Millennials + Generation Z) accounts for 55%. This means one out of every two coin investors is from the MZ generation.
The stock market is no exception. The KOSPI index fell sharply last year. According to the Korea Securities Depository, investors in their 20s and 30s accounted for 41% of the securities market as of the end of 2021. It is estimated that many of those who suffered losses in last year’s downturn were from the 2030 generation.
Experts have expressed concerns that the series of investment market disruptions could even undermine young people’s motivation to strive. Hwang Seung-yeon, emeritus professor of sociology at Kyung Hee University, said, "There are concerns about side effects such as decreased motivation to improve life due to distrust of the investment market and relative deprivation." He added, "It leads to a loss of hope that one can achieve something through effort."
He continued, "The 2030 generation flocked to the stock and cryptocurrency markets as a last hope for homeownership amid soaring real estate prices." He added, "Because they feel they cannot even secure a home no matter what, the sense of deprivation is expected to be greater."
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