Majority of South Korean Stock Investors Hold Less Than $7,500; Wealth Concentrates at Top

Despite a rising stock market, a stark reality for many South Korean investors is that the gains are not being shared equally. Data reveals that a substantial 60.4% of individual investors, totaling 8.74 million people, hold less than 10 million won in stocks. Among these, over 30% possess less than 1 million won.

This disparity is highlighted by the fact that the bottom 60% of investors collectively own only 1.9% of the total stock value, amounting to 19.17 trillion won out of a total of 1,014 trillion won. In contrast, the top 1% of investors, those holding over 500 million won, increased their share of total holdings from 54.9% in late 2021 to 59.7% by the end of 2025. This concentration of wealth is further exacerbated by the fact that the top 1% now holds nearly 60% of all stocks.

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The Kospi is rising every day, but my account remains the same.

The benefits of the stock market's growth are disproportionately flowing to older generations. Investors in their 60s saw their stock assets surge by 55.5% over four years, from 170.3 trillion won to 264.9 trillion won, absorbing most of the market's overall increase. Those in their 50s also experienced significant growth, exceeding the market average. Conversely, investors in their 20s saw their stock holdings plummet by 22%, and those in their 30s also experienced a decline, indicating a widening wealth gap between generations.

This trend of wealth concentration occurs amidst a financial system where tax equity is lagging. Currently, capital gains tax on domestic stocks applies only to investors holding over 500 million won per stock or specific share percentages. While the government attempted to lower this threshold to 1 billion won, it faced investor backlash. Furthermore, dividend income, previously taxed at up to 45%, was reformed last year to a separate taxation system with lower rates, further benefiting major shareholders.

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In the past, during a 'low-low-low boom,' many industries grew together. Now, with the semiconductor concentration exceeding 50%, investment is bound to favor those who are already wealthy.