'"The Domestic Market Feels Stifling"... 60% of Investment Funds from 20-Somethings Flow Overseas'

All-In Overseas for 20s vs. Home Market Preference for 60s
Retail Investors' Returns Still a Thorny Path

The core of assets held by people in their 20s and 30s is rapidly shifting overseas. In particular, investors in their 20s are concentrating 60% of their total investment funds in overseas markets, effectively treating foreign markets rather than the domestic market as their main stage.

According to the report titled "Characteristics and Performance Analysis of Individual Investors' Overseas Investment" by Kang Sohyun and Kim Minki, researchers at the Korea Capital Market Institute, as of February 10, individual investors held an average of 5.92 securities products per day, of which 4.91 were domestic stocks.

Investors in their 20s and 30s showed a relatively high share of foreign stocks and overseas exchange-traded products (ETPs). In particular, investors in their 20s were investing 60.0% of their total investment amount in overseas ETPs, including exchange-traded funds (ETFs). This figure is almost twice the share of domestic stocks, which stood at 30.8%. Investors in their 30s also focused on global portfolios, putting 45.5% of their investment funds into overseas ETPs. In contrast, the higher the age group, the stronger the preference for the domestic stock market. Among investors in their 60s, domestic stocks accounted for 90.9% of their holdings, while overseas ETPs made up only 12.8%.

Investment approaches also differed by gender. Female investors held an average of 6.38 stocks, showing a tendency toward diversification by spreading their assets across more stocks than male investors, who held 5.52 on average. However, the share of domestic stocks among women was 84.5%, higher than that of men at 81.6%. The average investment amount for men was 58.87 million won, about 30% higher than that of women at 44.10 million won.

The size of assets was a key indicator determining the ability to diversify. Small investors with 5 million won or less held an average of only 2.7 stocks, showing a tendency to concentrate on specific names. In contrast, large investors managing more than 300 million won held an average of 12.9 stocks in their portfolios. Investors with more than 300 million won significantly reduced the proportion of domestic stocks to 43.4% and allocated their assets across markets around the world.

The overall performance of individual investors lagged behind market returns and remained sluggish. Some improvement in performance was observed among investors who managed risk through overseas investment, but about half of them still recorded returns that fell short of expectations.

The Korea Capital Market Institute stated, "It is necessary not only to provide tailored financial education for young people and small investors, but also to expand digital risk warning systems."