Summary of the Core Content
This article tells a story of a “dream shattered”: Initially, there were wild rumors online that South Korea had entered a “golden age” for its workers—with a soaring stock market, a promising start in football, more holidays, and a convenient passport system. Some South Korean girls even claimed they had made five years’ worth of salary from the stock market. However, things quickly turned around: the South Korean national football team was eliminated in the group stages, the stock market experienced two circuit breakers within a week, and many retail investors who used leverage suffered massive losses as foreign capital fled the country at high prices. The article compares this situation to America’s post-World War II manufacturing boom and Japan’s “Heisei Boom” economic bubble, concluding that only a golden age driven by industrial upgrading and technological progress is sustainable; financial speculation bubbles are inevitably short-lived.
How the South Korean “Golden Age” Dream Was Created
The initial posts portrayed South Korea as a paradise:
- Soaring Stock Market: The KOSPI index has gained approximately 300% this year, with some investors making five years’ worth of salary from stock trading.
- Promising Football Performance: A victory in the World Cup group stage increased the team’s chances of advancing by 94%, sparking nationwide celebration.
- Comfortable Living Standards: With more holidays and a passport that allows for virtually visa-free travel worldwide, people could afford to fly to tropical islands with just a week’s salary saved from discounted flights.
- Pro-Government Policies: Politicians like Lee Jae-myeong promised to distribute the excess profits of companies like Samsung and SK Hynix to the public.
These factors made South Koreans in other countries envious: “Have the South Koreans really achieved great success?”
The 180-Degree Turn of the Dream
In just a few weeks, the “golden age” turned into a nightmare:
- Football Disappointment: The team lost two consecutive matches to Mexico and South Africa, finishing third in their group and being eliminated. South Korean fans were furious; they blacklisted coach Hong Myung-pu in pubs and censored his image on TV (as if he were a criminal), even demanding an investigation into the team’s failure.
- Stock Market Crash: The KOSPI experienced two circuit breakers in June, with Samsung and SK Hynix losing more than 12% in a single day. In July, global tech stocks plummeted, causing SK Hynix to lose approximately 160 billion Korean won (about 100 billion RMB). Many leveraged retail investors lost all their investments and even ended up in debt.
The story of the South Korean girl who had made five years’ worth of salary from the stock market turned into a nightmare: She used five times her savings as leverage but ended up losing all her money and unable to afford even rent.
Who Was Buying the Stocks During the Crash?
Data shows that foreign capital withdrew 95 billion US dollars from the South Korean stock market this year, while local retail investors (including those buying ETFs) bought in for 80 billion US dollars. In other words, institutions and foreign investors secretly sold their shares when the market was at its peak, while ordinary people continued to believe it would rise further, sometimes borrowing money to do so. This is like someone eating all the cake, leaving others to fight over the leftovers—only for the “plate” to shatter in the end.
Comparing South Korea with the US and Japan: The Difference Between Genuine Golden Ages
The article uses the examples of the US and Japan to illustrate what constitutes a genuine golden age and what is just a bubble:
- America’s Genuine Golden Age: After World War II, Europe and Asia’s industries were devastated, allowing the US to dominate global manufacturing. Ford workers earned annual salaries of 4,000 US dollars, which was enough to buy a car and a villa; their wives took care of the children full-time, and they enjoyed healthcare and paid vacations—this prosperity came from real industrial growth, benefiting ordinary people.
- Japan’s Bubble Era: During the “Heisei Boom,” housing and stock prices skyrocketed, with claims like “you could buy a house in the US with the money from selling a property in Tokyo” or “college students receiving six job offers each.” However, when the bubble burst, the real estate and stock markets collapsed, leading to a society of low desire among younger people. This prosperity was built on financial speculation and was both short-lived and harmful.
The Lesson: What Kind of Golden Age Is Worth Aspiring To?
The author argues that only a golden age driven by industrial upgrading and technological progress is sustainable. For example, America’s post-World War II manufacturing boom or China’s current breakthroughs in renewable energy and semiconductors are supported by real economic strength and can provide lasting benefits for ordinary people. In contrast, bubbles created by stock market and housing speculation are like castles in the air that collapse at the first sign of trouble, harming the very people they were supposed to benefit.
In summary: Don’t be envious of short-term speculative booms; true prosperity comes from solid industrial development.