A screen displays closing stock market figures, including the Kospi, at Hana Bank's dealing room in central Seoul on Oct. 19. The Kospi closed 1.76 percent higher at 5,768.01, while the Kosdaq gained 1.78 percent to finish at 808.89.NEWS1
A 34-year-old man surnamed Jeong proposed to his girlfriend while the stock market was soaring. Now he has lost half of the 400 million won ($300,000) he had invested, including savings meant for a home before their wedding next year.
“I proposed when stocks were soaring, and I was full of confidence, but now I have no idea what to tell my girlfriend,” Jeong said. “I started buying more as prices fell a few weeks ago, then put in every last won when the market plunged. But stocks kept falling, and I feel like I'm losing my mind.”
Jeong is one of many young Koreans whose wedding savings and home down payments are evaporating in the recent Kospi plunge.
The Kospi slid 3.73 percent Tuesday to close at 5,552.74, down 215.27 points from Monday's close. As of Monday, the benchmark had fallen 15.65 percent since the start of October.
Young investors have borne the brunt of the Kospi's rout as Samsung Electronics and SK hynix, two of their most widely held stocks, suffered their worst weekly losses since the 2008 financial crisis. The chipmakers shed 17.8 percent and 24.3 percent, respectively, from Oct. 12 to Friday.
Brokerage firm Korea Investment & Securities found that 35.5 percent of investors in their 20s and 39.39 percent of those in their 30s hold shares in the two chipmakers.
A person clutches the back of their neck at the Korea Exchange in western Seoul as the Kospi plunges 454.59 points, or 7.57 percent, to close at 5,554.22 on Oct. 15.KIM KYUNG-ROK
The losses are even more dramatic when measured against their peaks.
Samsung Electronics plunged 39.86 percent from its June 18 closing high of 362,500 won to 218,000 won on Monday. SK hynix lost more than half its value, down 56.25 percent from 2.92 million won on June 22 to 1.28 million won.
As of Friday, 74 percent of SK hynix investors and 53 percent of Samsung Electronics investors at Korea Investment & Securities were sitting on losses.
The financial damage is forcing some young investors to reconsider marriage altogether.
Cho, a 28-year-old bride-to-be, had planned to buy a home later this year and get married next year. But her stock market losses have put those plans on hold.
“I would have to liquidate my entire stock portfolio to buy a home, but I can't bring myself to sell at a loss,” Cho said. “I'm afraid that if I invest the cash I have left to average down my losses, I'll end up never getting married. I feel completely stuck. My boyfriend's parents, who had agreed to contribute to our wedding expenses, have also suffered major stock losses. All our plans have been upended.”
A trading room in Hana Bank in central Seoul on Oct. 19.YONHAP
Experts warn against pouring more money into stocks to recoup losses after a sharp sell-off. The Kospi could fall further, and even a rebound may take years to erase the damage.
"Although the Kospi is oversold, the conditions aren't right for a decisive shift toward aggressive net buying," said Kim Dae-jun, a senior researcher at Korea Investment & Securities. "Liquidity remains tight, and risks tied to AI infrastructure persist. Investors who buy solely on the assumption that prices are attractive could face heightened market volatility."
Korea Investment & Securities on Monday identified 5,100 as a potential floor for the Kospi.
"Investors should prepare for further declines and stick to a disciplined, staggered buying strategy," Kim added.
"Another rally is possible, but investors should be prepared to wait a year or more," said Lee Kyung-min, an analyst at Daishin Securities.
Lee projected that the Kospi would not return to its previous high near 10,000 until after July 2028. "If the index falls below 5,000 and cannot regain 5,200 even after a rebound, the scenario for a sustained rally may no longer hold," he said.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
