As the KOSPI rally continues, retail investors' generational investment strategies are diverging sharply. Parents are expanding into large-cap stocks in Korea's major industries such as shipbuilding, defense, and energy, while children's accounts are heavily loaded with exchange-traded funds (ETFs) tracking major US indices. Interest in semiconductor stocks currently leading the market—Samsung Electronics (005930.KS) and SK hynix (000660.KS)—transcended age groups.
According to an analysis of Korean stock holdings by age group conducted by Kiwoom Securities' (039490.KS) Insight Lab, Samsung Electronics held the unchallenged No. 1 position in holdings as of the 1st of this month. SK hynix also ranked No. 2 in holdings across all age groups over 50. This is interpreted as reflecting the domestic stock market's rally centered on large-cap semiconductor stocks this year. The average balance of Samsung Electronics among investors in their 70s was 47.17 million won ($34,600), up 173.1% from last year, while SK hynix rose 251.9% to 73.72 million won ($54,100). For investors in their 60s, average balances of Samsung Electronics and SK hynix reached 35.21 million won and 40.31 million won, respectively. The two stocks surged 123.94% and 158.99% this year, driving the KOSPI's rise. Total individual net buying reached 19.05 trillion won for Samsung Electronics and 10.23 trillion won for SK hynix.
Excluding semiconductors, generational differences were pronounced. In accounts of investors in their 70s, Doosan Enerbility (034020.KS) ranked third in holdings, while Samsung Heavy Industries (010140.KS) and Hanwha Ocean (042660.KS) ranked 9th and 10th, respectively. Investors in their 50s and 60s also placed manufacturing-based large-caps such as Hyundai Motor, Doosan Enerbility, POSCO Holdings, and Samsung SDI (006400.KS) in the top ranks. The average Hyundai Motor balance among investors in their 50s was 15.08 million won, up 93.4% from last year, while POSCO Holdings rose 67.1% to 19.67 million won. This is analyzed as a tendency to trust core industries such as automobiles, shipbuilding, and energy in addition to semiconductors.
At Toss Securities, Doosan Enerbility was also the fourth most-traded stock in the first quarter among investors aged 50 and over, following Samsung Electronics, SK hynix, and Hyundai Motor. Its share price has risen 72.11% this year. This is interpreted as the result of buying interest flowing in amid expectations for nuclear power plant and gas turbine orders. Doosan Enerbility recorded an all-time high of 14.7 trillion won in new orders last year and added 2.8 trillion won in new orders in the first quarter of this year, driven by gas turbine orders for North American data centers.
By contrast, accounts of minors under 19 showed a strong tendency toward long-term diversified investment. ETFs accounted for four of the top 10 holdings. Average balances were 2.68 million won for "TIGER US S&P 500," 2.74 million won for "KODEX US S&P 500," 2.53 million won for "KODEX US NASDAQ 100," and 3.10 million won for "KODEX 200." With the belief that US index ETFs trend upward over the long term, Standard & Poor's (S&P) 500 ETFs are a representative popular product. Notably, the average balance of KODEX 200 also rose 92.6% from last year thanks to the KOSPI's surge. In contrast, not a single ETF appeared among the top 10 holdings of investors aged 50 and over.
Net buying flows also diverged. From the start of this year through the 1st of this month, minors ranked US index ETFs tracking the S&P 500 and NASDAQ among their top net purchases. Investors in their 50s bought large-caps such as Samsung Electronics, Hyundai Motor, and SK hynix along with domestic index and leveraged products, while those in their 60s and 70s mainly purchased infrastructure, power, and defense-related stocks such as Hyundai Engineering & Construction (000720.KS), Korea Electric Power (015760.KS), LS Electric (010120.KS), and Korea Aerospace Industries (047810.KS). "This reflects the parent generation's global diversified investment awareness being extended to their children's portfolios," a Kiwoom Securities official said. "It is a sign of a healthy investment culture taking root over the long term."
