As volatility in Korea's stock market has intensified recently, a growing number of people are visiting psychiatric clinics complaining of stock losses and investment stress. Park Jong-seok, a psychiatrist who himself suffered losses exceeding 300 million won from failed stock investments, said, "Since last week, there has been a noticeable increase in new patients visiting the clinic over stock-related problems."
Appearing on YTN Radio on the 14th, Park said, "Among the new patients coming in recently, many complain of stock addiction, investment losses, or what is called 'stock depression.'" He explained, "As sharp market swings continue, anxiety and fear grow, and the number of investors who are psychologically shaken is increasing."
He assessed that during phases of sharp market decline, emotions tend to override rational judgment. "Even if you set a principle of buying in small installments, when anxiety grows, the brain's emotional regulation function is disrupted, and it is not uncommon to act differently from the plan," he said.
"My Friend Made 200 Million Won" Also Hurts... FOMO Clouds Investment Judgment
Park revealed that he too jumped into "yeongkkeul" (borrowing to the limit) investing amid the investment fever of 2017-2018 and suffered losses of about 320 million won. He invested excessively in high-volatility stocks such as biotech shares and political theme stocks rather than blue chips, and the damage grew larger as he ventured into futures and options in an attempt to recover his losses.
This experience prompted him to begin studying stock addiction and investment depression, and he now provides related counseling and treatment. Park explained that while 'stock depression' is not yet an official psychiatric diagnosis, there are numerous cases in actual clinical practice of patients complaining of severe depression, anxiety, and insomnia following investment failures.
He cited 'FOMO' (fear of missing out) in particular as the biggest cause of investors being shaken. "When you hear a friend say they 'made 200 million won on SK hynix' or 'moved to an apartment in a better area after making profits,' the brain's dorsal anterior cingulate cortex (dACC) reacts strongly," he said. "According to research, the pain felt from such social comparison is processed in a manner similar to physical pain, and is often compared to the level of 'pain requiring four weeks of recovery.'"
"Obsession With Breaking Even Is More Dangerous"... Turn Off the Stock App and Invest in Yourself
Park pointed out that excessively averaging down on stocks that have incurred losses, or repeatedly investing in margin trading and high-leverage products, are also typical signs of investment addiction. The stronger the urge to recover losses by even taking out loans without sufficient planning, the more difficult objective judgment can become, he said.
He advised that to escape investment anxiety, it is above all necessary to keep some distance from smartphones and investment information for a certain period of time. This is because continuously checking stock charts or repeatedly viewing posts flaunting profits can further amplify anxiety and feelings of inferiority.
He continued, "The best blue-chip stock is ultimately yourself," adding, "Rather than clinging only to stock returns, investing time in your main job, self-development, and activities that bring satisfaction in daily life such as exercise or hobbies becomes a far greater asset in the long run." He added that before making investment decisions, one needs to soberly examine one's own investment disposition and the level of risk one can bear.
