From birth to brokerage: Why South Korea is seeing a surge in infant investment accounts

South Korean parents are opening investment accounts for their children even before they are born, aiming to provide a head start in building long-term wealth. Brokerage accounts for kids under one have tripled to around 15,000 at Mirae Asset Securities, while those for children under nine have surged 60% to about 185,000. This trend, driven by Korea's AI-powered market rally, reflects a shift towards generational wealth-planning, despite market volatility.

Parents invest in U.S. exchange-traded funds, focusing on the S&P 500, and the Korean semiconductor sector, believing that time in the market outweighs investment amount. Professor Jae-joon Woo of DePaul University predicts this trend will persist as long as equity investing is seen as a reliable way to build long-term wealth. The government has also simplified account opening procedures, allowing remote registration for minor accounts, which could further increase participation.