If you invest ₩300,000 ($217) every month for 20 years, where does the money end up?
Most Korean investors assume they'll comfortably clear ₩100 million. The answer, with a bank savings account at 3%, is ₩98.5 million — below that psychological threshold.
The math is straightforward. Total principal: ₩72 million (₩300K × 240 months). But outcomes diverge dramatically by return rate:
- 3% (Korean bank savings): ₩98.5 million
- 5% (domestic equity ETF): ₩123.4 million
- 7% (global mixed ETF): ₩156.3 million
- 10% (S&P500 ETF): ₩227.8 million
The gap between 3% and 10% scenarios is ₩129.3 million — larger than the entire principal.
SPY's 20-year CAGR stands at 10.49% as of April 2026 (dividends reinvested, per financecharts.com). Korean savings accounts top out at 3.15% before 15.4% withholding tax reduces returns further.
Compounding reveals a critical pattern: at 7%, the final 5 years (years 16–20) generate 51% of total investment gains. Breaking the chain at year 12 means missing the two biggest compounding years.
For 2026, a practical starting point: 50% S&P500 ETF + 30% domestic ETF + 20% short-bond ETF, held inside a Korean ISA account for tax benefits.
For the full simulation breakdown and portfolio strategy in Korean, visit Snakestock.
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