Adapted by:
Miguel Jorge
WriterJournalist. I've spent more than half of my life writing about technology, science, and culture. Before landing here, I worked at Telefónica, Prisa, Globus Comunicación, Hipertextual, and Gizmodo. I'm part of Webedia's cross-section team.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
After years of declining birth rates, South Korea finally saw a glimmer of hope in January. The nation reported an increase in births, breaking a nearly 10-year trend of decline. Following this, several ideas emerged to boost the birth rate further, including offering premium beef to new mothers. More recently, it’s come to light that parents are also giving their children very special presents. Notably, instead of toys, they’re buying them shares.
Stocks. In South Korea, traditional gifts for children (such as dolls, video game consoles, and games) are increasingly being replaced by stocks. This trend is gaining popularity among parents who want to instill financial education in their children from a young age. What used to be an area reserved for financial experts is now accessible to minors. With their parents’ consent, South Korean kids have opened more than 1.2 million investment accounts.
The Korean Times reports the story of Lee, a 45-year-old office worker who has been gifting stocks to his son on his birthday and Children’s Day (May 5) for the past seven years. This approach exemplifies a new philosophy of building early wealth and imparting economic knowledge through example. While the boy still prefers the Pokémon cards his mother gives him, his father’s intent is long-term. He wants his son to get familiar with concepts such as dividends, share ownership, and compound growth, even if he doesn’t fully understand them yet.
Instruments and tax benefits. Popular investment choices for young investors in South Korea include high-dividend ETFs and index funds that replicate benchmarks like the S&P 500. They also invest in well-known companies such as Samsung Electronics, Tesla, Nvidia, and Apple.
This modern approach to investing among children offers more than just educational value. It also provides tax advantages. Parents can transfer up to $14,300 tax-free per child every decade, making these gifts efficient wealth transfer vehicles.
The Korean Times illustrates this with the story of Shin, a father to a 3-year-old daughter. An initial investment of $14,300 with an annual return of 7% could grow to $50,000 over 20 years, all without incurring any taxes. This approach reflects an increasing belief that building a solid economic future begins not in adulthood but in the early years of life.
Teenage years and the stock market. A new trend is emerging among children and teenagers, particularly in the 17-19 age group. A recent survey revealed that 43% of young people already have an investment account in their name, while 58% plan to invest in stocks in the near future.
This early enthusiasm for investing stands in contrast to the traditional lack of financial literacy seen among young people in other countries. It highlights a shift in society, where practice and parental guidance are helping to reshape the relationship with money from an early age. Hwang Sei-woon, a researcher at the Korea Capital Market Institute, notes that this trend is low-risk due to the small initial investment amounts and guidance from adults. Moreover, it can significantly improve long-term financial literacy.
Engaging young investors. In response to this rise in early investors, brokerages are developing campaigns explicitly aimed at children and teenagers. On Children’s Day, companies such as Mirae Asset Securities, Samsung Securities, and Kiwoom Securities offered financial incentives, gift cards, and reduced commissions for children opening their first online accounts.
Kiwoom Sekuritas holds more than half a million accounts belonging to children. The company has launched an educational YouTube channel to teach basic financial concepts. This initiative is part of a broader strategy to capture young investors early and establish a long-term relationship with the market.
Transcending money. The Korean Times also highlights that, beyond simply accumulating wealth, this movement signifies a sociocultural transformation. Money is no longer a taboo subject between parents and children, but has become a part of everyday conversation. In a surprising turn of events, telling a young child that they’re a Tesla shareholder or that they own a fraction of the S&P 500 provides them with a new way to understand their place in the economic landscape.
In a society that has historically emphasized savings and education, South Korea seems to have discovered new methods to adapt these values for the 21st century. What was once an envelope filled with cash could now be a share in a company. What used to be a fleeting toy has now transformed into an educational tool for financial literacy.
As childhood gradually loses some of its playful character, it becomes intertwined with a broader concept of foresight. These “visionary” parents suggest that it’s never too early to learn how to invest for the future.
Image | Daniel Bernard
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