South Korea is experiencing a significant increase in the number of investment accounts being opened for babies and young children, with brokerage accounts for kids under the age of one nearly tripling from a year ago to about 15,000 in June at Mirae Asset Securities, the country's largest brokerage by market capitalization. Additionally, new account openings for those under nine years old have soared nearly 60% to around 185,000, excluding duplicate accounts, according to Mirae Asset Securities [1].
This surge is attributed to the enthusiasm generated by Korea's AI-powered market rally, which has encouraged a trend toward generational wealth planning. Despite volatility in the domestic stock market, many investors are seeking value in overseas markets as well. For example, one family invests 300,000 to 400,000 won ($210 to $280) per month in U.S. exchange-traded funds, mainly those tracking the S&P 500 [1]. Another parent is making regular investments in both the Korean semiconductor sector and U.S. physical AI-related stocks, citing high growth potential [1].
Jae-joon Woo, professor of economics at DePaul University, stated that this phenomenon is likely to persist even if markets become more volatile, as long as equity investing is seen as a reliable way to build long-term wealth. Woo also noted that this trend could signal a gradual but meaningful shift away from the traditional Korean preference for real estate as the primary form of household wealth [1].
A survey by the Ministry of Data and Statistics found that Korean households currently hold around three-quarters of their wealth in physical assets, mainly real estate, with the remainder in financial assets. The relatively high capital gains tax on property—ranging from 6% to 45% for properties owned two years or longer, and 40% to 70% for those owned less than two years—is another factor driving more Koreans to the stock market. By contrast, most retail investors are not subject to capital gains tax when selling Korea-listed shares unless they are major shareholders [1].
CONCLUSION
The surge in infant and child investment accounts in South Korea reflects a growing shift toward financial assets and generational wealth planning, spurred by the AI-driven market rally and favorable tax treatment for equities. This trend may represent a gradual move away from the country's traditional reliance on real estate as the main vehicle for household wealth.