From ‘YOLO’ to ‘FIRE’
Hey everyone! It feels like just yesterday all my friends’ Instagram feeds were filled with lavish vacation photos and designer hauls, living by the motto ‘YOLO.’ But lately, the conversation over coffee has totally changed. Instead of talking about the latest trends, we’re asking each other, “Have you invested in this stock?” or “What do you think about this ETF?”. There’s been a massive shift among young Koreans (the ‘MZ Generation’ as we’re called here) from living in the moment to planning seriously for the future. Many of us feel like our regular salaries just won’t cut it to ever afford a home in Seoul or have a comfortable retirement, so we’re taking matters into our own hands.
The Golden Age for Compounding
The buzzword everyone’s obsessed with is “compound interest.” A recent segment on the news show “Rediscovery of Investment” called people in their 30s the “golden time” for retirement planning because we have the longest time to let our investments grow. The idea is that starting early, even with small amounts, can lead to huge returns down the line. It’s all about playing the long game. This has led to a surge in young people opening up individual retirement pension (IRP) accounts, which are similar to a 401(k) or IRA in the States. Financial experts are all over TV and YouTube telling us to use these tax-advantaged accounts to maximize our gains.
What Are We Investing In?
So, where is all this money going? It’s a mix of everything! Domestic stocks are popular, but there’s a huge interest in U.S. stocks and ETFs, especially ones that track the S&P 500 or Nasdaq. Many believe that investing in global markets is a safer bet for long-term growth. Besides stocks, a surprising number of young, wealthy Koreans are also diving into cryptocurrencies. Although it’s volatile, the high-risk, high-return nature of crypto is really appealing to a generation that feels traditional career paths won’t guarantee wealth.
The Anxiety Fueling the Fire
Honestly, a lot of this investment fever is driven by anxiety. There’s a widespread feeling that the social safety net isn’t as strong as it used to be, and that we can’t rely on national pensions or our jobs to support us in old age. We see social media posts about people saving 100 million won (about $72,000 USD) in their 20s and feel the pressure to keep up. While this rush to invest is creating a more financially literate generation, experts do worry that some people are jumping in without enough knowledge, getting advice from YouTube or friends instead of certified professionals. Still, the overall trend is clear: for young Koreans, building wealth through smart investing isn’t just a hobby—it’s seen as the only way forward.
