Youth dreaming of property investments bank money instead
The Federation of Korean Industries (FKI) commissioned Mono Research to survey 700 Koreans in their 20s and 30s and released the results on Monday based on data collected from Nov. 12 to 16.
According to the data, 36.1 percent of the respondents said they think real estate investments are the most important. Around 32.4 percent said shares are.
Of those surveyed, 13.1 percent picked cryptocurrency, while only 8 percent said bank deposits are most important.
In terms of current investments, property was far down the list. The FKI notes skyrocketing prices prevents the young from investing in the asset.
About 37.5 percent of respondents said they are currently just saving their money in bank accounts. A full 33 percent said they are investing in stocks, while 10.3 percent said they put their money in cryptocurrencies. Only 9.8 percent said they have been engaging in real estate investment.
“Young Koreans still think real estate is the most promising investment in planning their futures, but they are turning to other methods, like cryptocurrencies, due to the skyrocketing property prices,” Yoo Hwan-ik, head of corporate policy team at FKI, wrote in the report.
When asked about their views on cryptocurrencies, around 44 percent said cryptocurrencies are “a means of speculation without physical substance.”
Of those surveyed, 40.5 percent said they have participated in cryptocurrency investment.
Of those who have invested in cryptocurrencies, 62.5 percent were small investors who committed less than 5 million won ($4,200). Only 2.8 percent of the young people invested 100 million won or more in cryptocurrency.
As for why they started cryptocurrency investment, 49.3 percent of respondents said their salaries are “too small to increase financial assets and plan for the future.” Some 11.2 percent said they chose cryptocurrencies because they cannot afford the surging prices of real estate, as well as stocks.
“It is a desperately urgent issue for the government that it should create more quality jobs for the young,” Yoo wrote. “The government must ease related regulations to allow companies to hire more young people, as well as create an environment for companies to start new businesses and foster venture firms.”
BY SARAH CHEA [email@example.com]