In South Korea, there is a stigma associated with stock investment, to the extent that there is a joke about recommending stocks to enemies.
However, in a capitalist society, investing in stocks is not an option, but a necessity.
Many Korean believe that individual investors are systematically disadvantaged against institutional investors in the following areas:
1) Lack of access to information specific to companies
2) Insufficient financial capability and tools (e.g. shorting)
3) Lack of financial knowledge
Although investing has become widespread among younger generation in Korea, many still think that stock investment is like a gamble.
I illustrate the necessity of stock investment by the following conversation to those Koreans who believe stock investment is risky.
Question 1: What is the most common complaint by employee?
A1: I work hard and do a good job for the company, yet nothing that comes back to me.
Question 2: Then, who owns the company?
A2: Of course, it is the shareholders.
Question 3: So, if you work hard at the company, who reaps the benefits?
A3: Well, I am doing good for the shareholders of the company.
Question 4: But why do you not want to become a shareholder of a company and only work as an employee?
Answer 4: ???
In a capitalist society, you have to own a growing company because you will never get rich with salary.
Therefore, it is really important to actually start investing even with a small amount at a young age, because investment also requires experience and trial and errors in finding out the best investment method only for you.
Korean article can be found here.
