With Donald Trump’s recent victory in the 2024 U.S. presidential election, many Korean university students are smiling at the explosive rise of certain stocks. As such, investing in stocks has become a way of making money for Korean university students, and investing in U.S stocks has become a mainstream trend. In this article, The Dongguk Post will take a closer look at the rising popularity of investing in U.S. stocks among Korean university students.
To look at the trend and see the reasons behind it, we can refer to a recent survey conducted in June, by Korea Investment & Securities Co., Ltd. on the stock investment trends of 404 Korean university student. In this survey, 72% of the respondents said they are investing in overseas stocks, and the U.S. (86%) was the most popular country, followed by Japan (5%) and China (3%).
The top reason behind the surge in overseas stock investment was preference for stability and growth. The survey highlights that 41% of respondents find U.S. stocks less volatile and more stable than Korean ones. Large-cap U.S. companies with global influence, such as Apple, Microsoft, and Telsa, are perceived as safe investments with consistent growth. Additionally, the appeal of high-profile sectors like AI and ESG technologies can be seen to align with the students’ desire to invest in promising industries.
The ease of access to overseas stock investments is also thought to have contributed to this trend. The availability of multiple investment platforms for individuals has made investing in overseas stocks more accessible, and firms have followed along with the trend, lowering fees and organizing events to attract new investors who are potential clients.
Furthermore, a shift of view around the traditional way of earning money seems to play a big role. These days, with the inflation rates surging, pension systems falling down, and house prices skyrocketing, the youth tend to no longer believe that the traditional, saving up earned income way, is reliable to secure financial stability. Thus, more and more people are turning to investing in stocks to get ahead.
Regarding this trend, The Dongguk Post got to hear directly from Dongguk University’s students on their experiences. “There seems to be two main reasons behind the current trends. First, recently there was a controversy over the introduction of the financial investment income tax in Korea, and because of this, high net worth individuals have withdrawn from the domestic investment market, resulting in the weakening of domestic market. Second, the growth rate of the U.S market, is much higher than the local market, thus investing there has a higher probability of return,” said Park Jin-sung (Department of English Literature).
“During the times of COVID-19, many people were interested in stocks, and I was one of them. In the process, I naturally paid attention to companies that everyone knew, and I became interested in investing in U.S. stocks, such as Google, Tesla, and Apple,” Choi Yu-seok (Department of English Language, Interpreting and Translating) said. “When I go to class, I often see some of my classmates looking at stock and bitcoin charts. In addition, money, savings, and stocks are also topics that naturally come up in conversations with friends. It is true that the general awareness of stocks and bitcoin is much higher than the concepts of pensions, housing contracts, and savings among people in their 20s. However, I think it is important to invest based on a sufficient understanding, as many people are influence by recommendations and simple trends beyond their personal interests and studies.” he added.
The trend of stock investment continues to grow and does not seem to be slowing down anytime soon. With this in mind, The Dongguk Post hopes all students have safe and thoughtful investing experiences. To help, we encourage students who are interested in investing to check out the Professor’s Eye column in The Dongguk Post’s 461st newspaper. In the article, Professor Hyun Jung-hwan from the Department of International Trade shared useful advice about financial literacy and stock investment. His insights can help students better understand the basics of investing and make smarter financial choices.