9 reasons ordinary people in South Korea are struggling, as seen on X. By comparison, what’s making life hard for us?
1. Trapped in the stock market: Individual investors are down 4.5% this year, making it the worst time to invest in 27 years. In May and June, individual investors bought heavily at the peak, taking shares off foreign investors’ hands. Margin debt plunged from 139 trillion won to 88 trillion won in just four months—a drop of 51 trillion won.
2. Small businesses collapsing: Over the past five and a half years, 40,000 people went out of business after taking out loans as sole proprietors. Last year, 970,000 businesses closed, an 8.64% closure rate. The vacancy rate for small shops nationwide hit 13.4%, its highest level since records began.
3. Rising loan interest rates: Interest rates on overdraft credit lines rose from around 5% last year to 7.29% this year. Even people with credit scores above 900 saw rates rise from 5.2% to 8.8%. Borrow 50 million won and the monthly interest alone tops 300,000 won. Wages haven’t gone up, but interest payments feel as heavy as rent.
4. Housing costs soaring: Apartment prices in Seoul rose 15.5% in a year. Jeonse listings have all but disappeared, forcing people to switch to monthly rent. Average monthly rent in Seoul is 1.66 million won, and more than 60% of rentals are now monthly. Even with 80 million won saved, it’s hard to find a jeonse home; renting month to month means never being able to afford a home of your own.
5. Fewer jobs available: There are plenty of job postings, but almost none are for new graduates. HR staff at major companies say one AI tool can do the work of three entry-level hires, so they simply aren’t hiring. Middle-aged workers worry that changing jobs would cut their salaries in half, so they have no choice but to hang on.
6. Delivery gig pay plummeting: A delivery paid 4,000 won last year; now it pays only around 2,500 won. As small-business owners who went under, unemployed people, and foreigners flood into delivery work, the number of riders has doubled while orders have fallen. Even working in the rain doesn’t pay. Designated-driver work is the same.
7. Wages stagnating while expenses double: Three years ago, the salary was 3 million won, and it’s still 3 million won now. But groceries that used to fill a cart for 50,000 won now cost 100,000 won. Insurance, building maintenance fees, phone bills, and interest have all gone up. Credit card statements are full of essentials, leaving nothing over.
8. The government talks up KOSPI 5000, but individual investors are losing money: The news talks every day about the index heading for 5000 or 10,000, but individual investors’ accounts are all in the red. Individual investors bought 77 trillion won worth of shares at the peak in May and June. Now it’s only foreign investors pushing the index up, while ordinary people can only watch from the sidelines.
With small businesses closing at high rates, young people unable to find work, middle-aged people crushed by debt, and older people whose pensions can’t even cover rent, ordinary South Koreans—from the young to the old—see no hope.
$KORU
1. Trapped in the stock market: Individual investors are down 4.5% this year, making it the worst time to invest in 27 years. In May and June, individual investors bought heavily at the peak, taking shares off foreign investors’ hands. Margin debt plunged from 139 trillion won to 88 trillion won in just four months—a drop of 51 trillion won.
2. Small businesses collapsing: Over the past five and a half years, 40,000 people went out of business after taking out loans as sole proprietors. Last year, 970,000 businesses closed, an 8.64% closure rate. The vacancy rate for small shops nationwide hit 13.4%, its highest level since records began.
3. Rising loan interest rates: Interest rates on overdraft credit lines rose from around 5% last year to 7.29% this year. Even people with credit scores above 900 saw rates rise from 5.2% to 8.8%. Borrow 50 million won and the monthly interest alone tops 300,000 won. Wages haven’t gone up, but interest payments feel as heavy as rent.
4. Housing costs soaring: Apartment prices in Seoul rose 15.5% in a year. Jeonse listings have all but disappeared, forcing people to switch to monthly rent. Average monthly rent in Seoul is 1.66 million won, and more than 60% of rentals are now monthly. Even with 80 million won saved, it’s hard to find a jeonse home; renting month to month means never being able to afford a home of your own.
5. Fewer jobs available: There are plenty of job postings, but almost none are for new graduates. HR staff at major companies say one AI tool can do the work of three entry-level hires, so they simply aren’t hiring. Middle-aged workers worry that changing jobs would cut their salaries in half, so they have no choice but to hang on.
6. Delivery gig pay plummeting: A delivery paid 4,000 won last year; now it pays only around 2,500 won. As small-business owners who went under, unemployed people, and foreigners flood into delivery work, the number of riders has doubled while orders have fallen. Even working in the rain doesn’t pay. Designated-driver work is the same.
7. Wages stagnating while expenses double: Three years ago, the salary was 3 million won, and it’s still 3 million won now. But groceries that used to fill a cart for 50,000 won now cost 100,000 won. Insurance, building maintenance fees, phone bills, and interest have all gone up. Credit card statements are full of essentials, leaving nothing over.
8. The government talks up KOSPI 5000, but individual investors are losing money: The news talks every day about the index heading for 5000 or 10,000, but individual investors’ accounts are all in the red. Individual investors bought 77 trillion won worth of shares at the peak in May and June. Now it’s only foreign investors pushing the index up, while ordinary people can only watch from the sidelines.
With small businesses closing at high rates, young people unable to find work, middle-aged people crushed by debt, and older people whose pensions can’t even cover rent, ordinary South Koreans—from the young to the old—see no hope.
$KORU