South Korean parents are increasingly opening investment accounts for their children, including infants, as part of a growing trend toward long-term wealth planning. At Mirae Asset Securities, the country's largest brokerage by market capitalization, the number of brokerage accounts for children under the age of one nearly tripled from a year ago to about 15,000 in June. Additionally, new account openings for those under nine years old surged nearly 60% to around 185,000, excluding duplicate accounts, according to the brokerage [1].
This surge is attributed to Korea's AI-powered market rally, which has encouraged parents to seek value both domestically and abroad. Many parents are opting for regular investments in U.S. exchange-traded funds, particularly those tracking the S&P 500, as well as Korean semiconductor and U.S. physical AI–related stocks, which are perceived as having high growth potential [1]. For example, one family invests about 300,000 to 400,000 won ($210–$280) per month in these assets [1].
Jae-joon Woo, professor of economics at DePaul University, stated that this trend is likely to persist even amid market volatility, as equity investing is increasingly seen as a reliable way to build long-term wealth. Woo noted that this could signal a gradual shift away from the traditional Korean preference for real estate, which currently accounts for about three-quarters of household wealth, according to a Ministry of Data and Statistics survey [1].
Tax considerations are also influencing this shift. Jeong-woo Park, senior economist for South Korea at Nomura, explained that the relatively high capital gains tax on property—ranging from 6% to 45% for properties held two years or longer, and jumping to 40% for certain cases—makes stock market investments more attractive for many Koreans [1].
CONCLUSION
The surge in infant and child investment accounts in South Korea reflects a significant generational shift toward financial assets, driven by market trends and tax considerations. This movement may gradually alter the traditional dominance of real estate in Korean household wealth portfolios, with long-term implications for the country's investment landscape.