Seoul, South Korea – The bustling nightlife of Seoul came to an abrupt halt in 2020 due to COVID-19, leading people like Kim Gyeong-eob to seek alternative ways to spend their money. Kim, an IT engineer, turned to investing in the stock market, focusing on established companies like Samsung.
This trend of young Koreans dabbling in stocks has led to a 23.1 percent rise in Korea’s stock market capitalisation. Despite hosting global giants like Samsung, Korea’s stock market has traditionally been undervalued, resulting in low valuations.
South Korea’s government aims to tackle this issue through initiatives like the Corporate Value-up Programme, but challenges remain in convincing companies to share more profits with shareholders. Investors are cautious about proposed reforms, questioning their impact on the root causes of undervaluation.
Although the road to reform may be bumpy, small investors like Kim remain hopeful, seeing stock investment as a pathway to a secure financial future. With the right approach, even amidst uncertainties, they strive for early retirement and financial independence.