Retailers’ investment portfolios vary by age: 20s buy Korean Air, 60s EcoPro

Korean Air Lines Co. and EcoPro BM Co. [Courtesy of each company]

Individual investors’ investment portfolios vary by age, an analysis showed, with young South Koreans holding more shares of Korean Air Lines Co. than their older peers aged over 60 that favor secondary battery stocks.

According to an analysis by NH Investment & Securities Co. on the portfolio of its 2.68 million individual investor accounts as of Wednesday, certain stocks were owned by certain age groups more than other age groups. Large-cap stocks, in the meantime, were favored by all age groups, such as Samsung Electronics Co., Kakao Corp., Naver Corp., and Hyundai Motor Co.

Young investors in their 20s and 30s invested largely in Korean Air Lines Co. compared with other age groups.

Some 25,000 investors in their 20s, or 6.8 percent of that age bracket, had shares in the air carrier, and some 33,000 people, or 6.3 percent of those in their 30s had the stock.

Korean Air ranked No. 4 in terms of stock holding by investors in their 20s and No. 6 by those in their 30s.

Analysts noted that young people favor the stock as they are exposed to the company as they travel more than other generations.

Young investors are also hyped about the pandemic coming to an end that may lead to higher demand in overseas travel.

Shares of Korean Air, however, have remained weak, with the price falling 23 percent over the past year.

Investors in their 40s and 50s reaped shares of LG Electronics Inc.

The analysis showed that 3.6 percent of the investors in their 40s, or 22,000 people in that age group, held shares in the company, and 3.8 percent in their 50s.

LG Electronics was not among the top 20 most-bought companies across all age brackets but investment choices made by these experienced investors raised the stock price by more than 30 percent this year.

Investors aged over 60 sought secondary battery stocks more than other age groups.

POSCO Holdings Inc. building [Photo by Lee Chung-woo]

They bought stocks of POSCO Holdings Inc., the parent of the country’s largest steelmaker, and EcoPro BM Co., secondary battery materials maker.

POSCO’s battery arm POSCO Future M Co. and the secondary battery materials company’s holdings company EcoPro Co. were also among the top 10 most-bought stocks in this age group.

Four secondary battery stocks were included in the top 10 list while only two of those companies were included among investors in their 20s and 50s, respectively, and only one among investors in their 30s and 40s.

“While many investors have sold secondary battery stocks recently due to high volatility, investors aged over 60 seem to be keeping their stocks as they seek long-term investments,” said a senior analyst at NH Investment & Securities.

Looking at data across all age groups, Samsung Electronics was the most bought company, owned by 31.7 percent or 851,000 people, followed by Kakao at 12 percent.

By value, Samsung Electronics topped the list with a combined holdings worth 7.4 trillion won ($5.6 billion). Kakao ranked sixth as its stock price plunged 35 percent over the past year.

K-pop label Hybe Co. and EcoPro had higher value of holdings, given their relatively smaller number of investors. While only 1 percent of those in the survey sample held the music label, the value of the balance of their holdings was worth 4.3 trillion won, the second largest on the entire list of companies.

EcoPro sat with the fourth largest balance of holdings with 1.3 trillion won.

Shares of Hybe gained 13 percent over the past year while those of EcoPro soared 626 percent.