Koreans in their 20s and 30s have sharply increased their holdings of stocks and funds while also putting more money into installment savings accounts, an analysis showed. Rather than replacing saving with investing, younger Koreans are doing both at once.
The findings come from the Shinhan Card Big Data Research Institute, which examined changes in the financial assets of Shinhan Bank and Shinhan Securities customers, according to financial industry officials on the 21st.
The institute analyzed customers holding financial assets of between 100 million won and 1 billion won, broken down by age group. Among those in their 20s, stock holdings rose 139% as of the end of August from the end of 2024. For those in their 30s, the increase was 124%. In less than two years, equity assets for both age groups more than doubled.
Investors in their 20s poured into the stock market in particular this year. Their stock holdings grew 37% between the end of 2024 and the end of October last year, then jumped 130% between the end of October last year and the end of August this year. For those in their 30s, holdings rose 83% in each of the two periods. Among those in their 70s, growth slowed to 58% in the later period after a 154% gain in the earlier one. "This appears to reflect younger investors channeling large sums into equities amid the bull market early this year, rapidly building up their assets," the Shinhan Card Big Data Research Institute said.
Fund holdings followed a similar pattern. As of the end of August, fund assets were up 26% for those in their 20s and 19% for those in their 30s from the end of 2024. Brokerage account deposits — cash parked in securities accounts — climbed 84% and 115%, respectively. That means not only stock and fund holdings but also the cash available for future investment expanded.
Time deposits, by contrast, fell 34% for those in their 20s and 28% for those in their 30s over the same period. Time deposits shrank across every age group except those in their 70s. Holdings fell 29% for those in their 40s, 22% for those in their 50s and 11% for those in their 60s. Only those in their 70s posted an increase, at 10%. Even so, that group also showed an aggressive streak, with stock holdings up 151%. "Balances held by people in their 70s are relatively small, so the percentage gain can look large," an official at a commercial bank said. "It is evidence that interest has risen across all generations as the stock investment boom took hold this year."
Installment savings accounts offer the most striking contrast. Over the same period, balances rose 10% for both those in their 20s and those in their 30s. Retirement pension assets set aside for old age also grew, by 10% for those in their 20s and 26% for those in their 30s. "The strategy chosen by people in their 20s and 30s is not investing instead of saving, but saving while investing," the Shinhan Card Big Data Research Institute said. "They are pursuing a balanced two-track strategy, aggressively growing assets through stocks while maintaining a solid financial safety net through liquidity and regular savings."
Liquid deposits, which allow money to be withdrawn and added at any time, rose 5% for those in their 20s and 10% for those in their 30s. Together with brokerage deposits, that marks an expansion of cash available for investment when needed. The trend suggests younger Koreans are prioritizing access to their money over locking up large sums for long periods.
The analysis also found a broadening base of the "mass affluent" — customers with financial assets of 100 million won or more but less than 1 billion won. The number of customers in that bracket rose 24% from the end of 2024 through the end of August, four times the 6% growth in the total customer base. Their financial assets grew 27% over the same period.
Polarization among wealthier customers also deepened. Total financial assets across all customers rose 29% during the period, but those holding less than 100 million won saw growth of just 9%. Assets grew 27% in the 100 million to 1 billion won bracket and 54% among those with 1 billion won or more. The growth rate for the wealthiest customers was about six times that of those with less than 100 million won. Overall, assets did not rise evenly; customers who already held a certain level of funds built their wealth faster.
"The mass affluent are the group that serves as a springboard to higher asset brackets," an official at the Shinhan Card Big Data Research Institute said. "The way people build wealth is shifting from a savings-centered approach to one that combines investing and saving, and this change is emerging faster among younger generations."