Cases of young investors suffering heavy losses after piling into the stock market are mounting. On social media, a growing number of young people say they have been pushed to the brink of bankruptcy after turning to leverage and margin trading — so-called "debt investing," or borrowing money to invest — in pursuit of quick, high returns. Analysts say rising home prices and a tough job market, which have spread the perception that wealth cannot be built through labor income alone, have fueled reckless investment sentiment among the young.
Kim Dae-jong, a professor of economics at Sejong University, stressed the need to build sound economic thinking in an interview with the Seoul Economic Daily held on the 24th at his office in Gwangjin District, Seoul. "Many young people struggle in society because they lack economic and financial knowledge," Kim said. Kim argued that universities have long been fixated on job placement and have neglected to teach economic and financial knowledge to young people. "Rather than just urging people to invest in stocks, the government should step in to help young people learn stocks, asset management and financial basics so they can form sound investment values now," Kim said.
On the recent situation in which investors, including the young, have suffered heavy losses amid growing volatility in domestic markets, Kim said it "has become a wake-up call for society as a whole." His assessment is that a lack of basic investing experience or understanding led people into reckless bets such as debt investing, ultimately resulting in losses. "It was because they were swept up in so-called FOMO, or fear of missing out, and jumped into stocks recklessly," Kim said. "If large numbers of young people are pushed to the brink of bankruptcy, it could create social problems down the road."
On youth unemployment, Kim pointed out that while specialized skills are needed, students remain stuck on managing grades for job placement. The reality is that the door to the job market is narrowing, he said, yet universities still cannot shake the illusion that grades alone can secure employment. According to Statistics Korea, the youth employment rate stood at 44.2% in July, falling for the 27th consecutive month since May 2024. "There was a time in the past when simply graduating from university got you a job, but the era in which a college degree guarantees employment is over," Kim said. "With the advance of artificial intelligence and the introduction and expansion of physical AI, the replacement of jobs will proceed rapidly."
Kim criticized the fact that while many young people aim to "get rich," few actually start their own businesses. "Because their goals are not clear, they struggle to find jobs, and even after landing one, they keep switching jobs repeatedly," he said. "That is also why there are too few young people entering the startup market in Korea." His logic is that challenges in entrepreneurship will grow only when final goals are clear. "College students, too, should decide clearly on what field or occupation to choose, rather than simply aiming to get into a certain company," Kim advised.
Kim, who holds a doctorate in economics, began his career as an entry-level employee at LG Electronics and went on to work in a range of jobs, including as an analyst at Hyundai Securities, a reporter at an economic newspaper and an aide to a member of the National Assembly. In academia, he has served as president of the Korea Market Economy Professors Association, president of the Korea Market Economy Research Association and vice president of the International Academy of Management. In 2016, Kim was listed in Marquis Who's Who, one of the world's three major biographical directories, in recognition of numerous papers and expertise in economics. Since 2024, Kim has been publishing "Grand Economic Outlook," which covers the outlook for Korea's economy in the coming year.
Kim forecast next year's economic growth rate at 2.5%, led by semiconductors, and cited securing manpower as a key task. Kim projected that mid- to long-term growth potential remains open despite recent share-price declines at Samsung Electronics (005930.KS) and SK hynix (000660.KS). "Despite the recent drop in share prices, growth in the semiconductor industry will continue next year as demand expands for memory chips and high-bandwidth memory (HBM)," Kim said. "To maintain the competitiveness of the semiconductor industry, above all, it is essential to secure specialized personnel along with expanding production infrastructure such as power grids and water supply." He added, "The Trump administration is signaling cuts to the corporate tax rate as it lays out an ambition to make the United States the world's top manufacturing nation. For Korea, too, sharply cutting the corporate tax to U.S. levels and creating a business-friendly environment through balanced labor policies between management and unions will be the key to growth."
