From birth to brokerage: Why South Korea is seeing a surge in infant investment accounts
South Korean babies are turning into mini shareholders, thanks to their parents' investment strategies.
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.
Written by urgent.news from CNBC World's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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