All jeonse deposit funds invested in stocks
Samsung Electronics and SK Hynix rally generates tens of millions of won in profit
As the KOSPI continues its record-high rally on the back of strength in semiconductor stocks, the story of a civil servant who allegedly invested his entire 300 million won in marriage funds into Samsung Electronics and SK Hynix has gone viral. With the two stocks continuing their sharp gains and generating what is estimated to be tens of millions of won in unrealized profits in a short period, investors are paying close attention.
On the 26th, as the KOSPI extended its record-high rally and closed at 6,307.27, up 223.41 points (3.67%) from the previous session, a dealer is working in the dealing room at Hana Bank's Seoul headquarters. Yonhap News
"I believe this is just the beginning of a bull market"...All-in on marriage funds
On the 26th, a post titled "My girlfriend and I agreed to split all our marriage funds today between Samsung Electronics and SK Hynix" spread across online communities. The author, identified as Mr. A, who described himself as a civil servant, said he bought about 150 million won worth of Samsung Electronics shares and about 150 million won worth of SK Hynix shares using 300 million won he had saved for his wedding and a jeonse deposit.
Mr. A said, "I believe that 300 million won will become 1 billion won in a year. I agonized over it a lot, but I still think this is just the beginning of a bull market," adding, "I saw this as an opportunity in the new-normal era of the domestic stock market to grow my assets. I hope it goes well." His decision to prioritize asset growth over securing housing right away is being interpreted as a bet on expectations of an improvement in semiconductor market conditions and on forecasts of rising demand for artificial intelligence (AI).
Short-term unrealized profit estimated at around 28 million won
In fact, Mr. A is achieving strong results so far. On the 26th, Samsung Electronics climbed intraday to 219,000 won and SK Hynix to 1,099,000 won, both hitting record highs. Mr. A disclosed that his average purchase prices were 199,700 won for Samsung Electronics and 1,002,000 won for SK Hynix. Based on the closing prices on the 26th, the returns are 9.16% for Samsung Electronics and 9.68% for SK Hynix. Given that his principal investment in each stock was about 150 million won, his unrealized profit is estimated to be around 28.26 million won.
Image generated by AI (artificial intelligence) to aid understanding of the article. ChatGPT · The Asia Business Daily DB
Online commenters reacted by saying, "I'm glad it's working out," and "That takes real courage," while also warning, "What if it had gone wrong?" "That mindset is far from the stability you expect from a civil servant," "It's too risky, so don't copy this carelessly," "If this had been a bear market, could he have handled it?" and "Going all-in on a single sector is way too dangerous."
Experts likewise stress the importance of risk management, regardless of the short-term performance. They point out that concentrating assets in a specific sector, especially in a highly cyclical industry like semiconductors, can deliver high returns during an upswing, but can also lead to large losses if market conditions deteriorate.
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