Korea's stock market is on a record run. So why are so many workers miserable?

An office worker surnamed Kim recently sought counseling after becoming increasingly demoralized by a single fact: They didn't own a single semiconductor stock. They found themselves englufed in FOMO, or the “fear of missing out.”

"I was diagnosed with ‘brownout,’ a condition that comes before burnout and leaves people increasingly cynical and drained," Kim explained. "I'm afraid that all the work I put in still won't be enough to improve my life."

It's not just those who didn't get in on the market: A self-employed business owner surnamed Yoo began investing in stocks for the first time last year. However, even being involved in the market hasn't changed Yoo’s depression.

"I worked relentlessly for more than seven years without taking a single overseas trip," Yoo said. "Seeing other people make money so effortlessly left me feeling discouraged. I felt pressured to do the same and rushed into investing, but my returns have been disappointing."

As Korea's stock market rally continues to set record highs almost daily, a growing number of workers say they are losing motivation, a phenomenon some have dubbed the "Kospi blues." The surging bull run that the Kospi has experienced since the start of the year has ironically made more people feel depressed and discouraged about their finances.

Analysts warn that a growing polarization between investment income and labor income could leave more people trapped in poverty despite having jobs.

The share of labor income paid through wages and salaries among gross national income accounted for 66.8 percent last year, according to the Bank of Korea's Economic Statistics System on Wednesday. The figure was down 0.6 percentage points from 67.4 percent a year earlier.

Not only did it fall to its lowest level since 2021, when it stood at 66 percent, but it also posted a second straight annual decline.

Total employee compensation reached 1.27 quadrillion won ($837 billion) last year, up 3.8 percent from the previous year. However, the figure also saw its smallest growth since 2020 — when it only rose 2.4 percent.

Monthly labor income per household increased 0.3 percent on year in the first quarter of this year according to a survey from the Ministry of Data and Statistics. Labor income was the only category that failed to keep pace with overall income growth of 2.4 percent, which includes business, property and transfer income. Specifically, monthly business income rose by 2.6 percent, property income by 9.1 percent and transfer income by 9.7 percent in the same period. 

By contrast, the capital income share — the remainder after deducting the labor income ratio from 100 — has continued to rise. Corporate operating surpluses climbed 6.3 percent last year to 587.3 trillion won, driven largely by manufacturing companies and securities brokerages.

In an era when investment returns are growing faster than paychecks, many people feel they can no longer afford to stay out of the stock market.

One in four Koreans owned stocks last year, according to the Korea Securities Depository. The number of individual shareholders in listed companies had stood at a record 14.56 million as of the end of last year — up 330,000 from a year earlier.

Statistics also suggest that hard work alone may no longer be enough to escape poverty.

Those earning labor income but living on less than 50 percent of the median income — called the working poor — accounted for roughly 10 to 12 percent of all employed people, according to data compiled by the Ministry of Data and Statistics and the Korea Institute for Health and Social Affairs.

That translates to an estimated 3 million people last year.

The relative poverty rate, which includes the working poor, rose to 15.3 percent in 2024, up 0.4 percentage points from the previous year. The rate refers to the share of the population whose income falls below 50 percent of equivalized disposable median income.

The divide between labor and capital may widen further, analysts say. With AI and humanoid robots increasingly replacing human labor, employment is expected to remain sluggish despite rising corporate investment.

Last month, the number of employed people fell by 40,000 from a year earlier, which marked the first decline in 17 months. Over the same period, employment among people ages 15 to 29 dropped by 255,000.

"The impact of AI and stock market-centric policies are likely to reinforce the decline in the returns of labor income [to workers] and rise of returns through capital assets,” said Jeong Yong-taek, an economist at IBK Securities.

"Employment indicators are unlikely to break meaningfully from their downward trend."

Others argue that the value of labor will ultimately become even more important despite the investment boom.

“Stable labor income helps people avoid risky debt-financed investing,” said Rhee Chong-hoon, professor emeritus of business administration at Myongji University.

"The most reliable retirement strategy is to remain active in the labor market for as long as possible. Companies, too, will need to build a stronger pipeline of talent, including by expanding recruitment of young workers, to remain competitive in the long term."

BY KIM KYUNG-HEE [[email protected]]