The same number as the symbol of Japan's bubble economy is the Nikkei index of 38,915. This record, set on December 29, 1989, has not been broken for 34 years. Everyone knows what's behind it. The Japanese stock market, which failed to withstand sharp interest rate hikes and loan regulations, has plummeted since the beginning of 1990, the following year. And the more deadly collapse of the real estate market has left the Japanese in deep pain. The beginning of the lost 30 years has risen.

On the other hand, the base of 401K was spreading in the United States at the same time. 401K, a retirement pension that automatically invests in stocks and funds by taking a portion of its salary, served as a reliable safety valve for Americans. Even now, two-thirds of U.S. subscribers make indirect investments through the Target Date Fund (TDF). Individual stocks are not selected, investment assets are allocated, and they are not sold until retirement. As a result, there are millions of dollars in assets.

Which path will Korea take between Japan and the United States. Recently, the Korean stock market has been on a rollercoaster ride. On the 8th and 9th, the KOSPI plunged and soared 8% per day, and the surge continues every day. Investors' impatience is growing as they see fluctuating stock prices. The evidence is that debt investment (investment by debt) has increased rapidly. Financial authorities have belatedly started tightening debt, but it seems to be too much to quell the craze.

To make matters worse, the Samsung Electronics Leveraged Exchange Traded Fund (ETF), which appeared last month, has raised speculation. The leverage that follows the fluctuation rate of single stocks of Samsung Electronics and SK Hynix twice is a derivative product that individuals cannot afford. However, it gives a plausible sense of relief that the underlying asset is familiar to investors and is a product allowed by financial authorities. Samsung Electronics' profit forecast of hundreds of trillion won is supported, which also contributes to the belief that it will not lose money. It is an explosive popularity from the beginning of its launch, with the 'bandwagon effect' that rides on friends and co-workers. This product has raised concerns about volatility in the Korean stock market.

Unfortunately, greed to pursue faster profits is prone to catastrophe. The more the stock price fluctuates, the less the principal is due to the "negative welfare effect." Moreover, it is a precarious gamble for individual investors who have jumped into leverage by pulling out Maton (minus bank accounts) and credit loans. At the end of optimism and debt-fighting, there is no doubt a "Minsky moment."

Investment guru Warren Buffett once mentioned Charlie Munger's remarks in an interview with CNBC in 2018. "My partner Charlie said there are three ways for a smart person to go bankrupt. It's alcohol, women, and leverage." Among them, he pointed out that the real thing is leverage. Morgan Hausel, a world-renowned best-selling author, also wrote in his book The Law of Immutableness. "Stocks bring big returns in the long run, but if you try to make a profit quickly, it gives you a harsh loss."

Financial authorities should not miss the side effects of Samsung Electronics' leverage. The justification for holding money going abroad, such as the U.S. and Hong Kong, is good, and the logic that product diversity and investor choice should be respected is also persuasive. Nevertheless, it is impossible to erase the feeling that the current release timing is offbeat. This is because it has opened the door to ultra-high-risk investment to ants already bruised by FOMO (foreign fear). Healthy investment practices must be established to revive the growth momentum of the Korean capital market in the era of KOSPI 8000.

The words of Bae Jae-kyu, CEO of Korea Investment Trust Management, who is called the "father of domestic ETFs," come to mind. "Passive long-term investment gives you the freedom to stretch your legs and sleep comfortably. Why throw yourself into uncertainty." What matters is not how much you earn but how long you can keep playing.

[Hwang Inhyuk, deputy director of bureau and digital news department]