South Korea: Trend of giving stocks to children promotes financial education

Korean trading companies offer many incentives for young customers.

This drives the need for financialeducation for children.

Mr. Lee, 45, an office worker in Seoul, South Korea, has been buying stocks or exchange-traded funds (ETFs) every year on his son’s birthday and Children’s Day, worth about 1 million won, since his son started kindergarten.

“My child is still too young to fully understand the meaning of stocks, but I believe this is a way to build a financial foundation for him in the future,” Mr. Lee shared.

According to data from six major asset brokerage firms in Korea, including Mirae Asset Securities, Samsung Securities and Kiwoom Securities, there are currently about 1.2 million securities accounts in the names of minors. Korean law does not limit the age of securities trading, as long as the child has the consent and support of a parent or legal guardian.

Among the investments chosen, stocks of well-known companies such as Samsung Electronics are the favorites of most parents. In addition, US technology stocks such as Tesla, Apple and Nvidia are also among the popular investments, reflecting parents' confidence in the long-term potential of these businesses.

Investing in stocks early on is not just about material value, it also has educational significance. Many parents believe that having their children own shares in a company can help them understand more about the economy , how businesses operate, and the importance of accumulating assets.

Another reason why many parents choose this form of giving is the preferential tax exemption policy. Under current regulations, parents can give up to 20 million won to their children without paying taxes within 10 years. If invested effectively, this amount can grow significantly in the long term.

“With an average interest rate of 7 percent per year, an investment of 20 million won can become 70 million won after 20 years without being taxed,” said Mr. Shin, a parent of a 3-year-old daughter.

Notably, many teenagers are also showing interest in financial investments. According to a survey by Hana Financial Research Institute, more than 500 high school students said stocks were the most popular financial product. Another survey by Samsung Securities showed that 43% of students aged 17 to 19 already had a securities account, and 58% planned to invest in the future.

To meet the new trend, brokerage firms are rolling out special offers for younger clients. For example, on Children’s Day, companies such as Mirae Asset and Kiwoom Securities launched promotional packages such as gift cards, cash rewards, and free trading for new child accounts. Additionally, financial education YouTube channels are being developed to support parents and students.

The change in the way children are given gifts is not just a temporary trend but also a profound change in the approach to financial education in Korea. If replicated and maintained sustainably, this could be the beginning of a generation of mature investors with early and steady financial thinking in the future.

Cam Giang (According to giaoducthoidai)

Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/128116/Han-Quoc-Xu-huong-tang-co-phieu-cho-tre-em-thuc-day-GD-tai-chinh