“I don’t like executives” dreaming of early retirement by accumulating assets… “Let’s fall behind”
“I focus on investing in stocks rather than working at the company”
More and more 20 and 30 households are turning their eyes to asset income such as stocks and real estate rather than salary. This is because asset prices are soaring, and there is a widespread perception that it is impossible to accumulate wealth by collecting only monthly salaries through deposits and savings. This is not an unfounded idea. According to KB Kookmin Bank, the ratio of house prices in Seoul to income as of November last year (PIR) was 15.6 years. In Seoul, this means that a middle-income household (in the order of income, the income of the middle-aged household) can only buy a house without spending a single penny and earning more than 15 years.
There are also’Financial Independence Retire Early’ families who dream of early retirement beyond’impoor’. It is a new term for a person whose goal is to retire in their early 40s at the latest through economic independence. During the 2008 global financial crisis, it spread mainly among the young, highly educated, and high-income groups in the United States. If they tried to raise money for retirement through’savings’ that fasten their belts, the Fire tribes of Korea turned toward making retirement funds through stock investment.
According to The Generation of Inequality, written by Lee Chul-seung, a professor of sociology at Sogang University, the income of generations born in the late 1960s rose 53% from the early 1990s to the late 2000s. Those born in the late ’70s’ income increased by 26% from the early 2000s to the late 2010s. However, for those born in the late 80s, income increased only 7.6% in the early to late 2010s.
There is a noticeable increase in the number of young people who are’debt-invested’ due to excessive investment fever. The money (credit loan balance) borrowed by securities companies under the age of 30 was 420 billion won as of the end of September last year, up 162.5% from the end of 2019 (160 billion won). It far exceeded the average growth rate (89.1%) of all age groups in the same period. In their debt-fighting procession, there is anxiety and impatience that’if you do not invest in debt, you will fall behind.’
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