Written by Anna J. Park
The asset standards for being classified as wealthy in South Korea have nearly doubled over the past 10 years from 11.4 billion won (approximately $8.7 million) in 2012 to 18.7 billion won in 2021. The proportion has remained unchanged at approximately 60% over the past 10 years. Ten years. Furthermore, more and more people believe that the minimum asset standard to be considered wealthy is 30 billion won.
This is according to the latest book released on Tuesday by Hana Financial Research Institute, an affiliate of Hana Bank. The book is a compilation of annual asset reports for the past 10 years, published since 2012. .
Cover image of “Korea Wealth Report” by Hana Financial Research Institute / Provided by Hana Financial Group
The book, titled “Korea's Wealth Report,'' states that more than half of the total assets held by the wealthy are real estate. This is much higher than the world's richest people, who hold an average of 15% of their wealth in real estate. Approximately 95 percent of South Korea's wealthy own their homes, and more than half own additional real estate.
Considering that the country's overall real estate prices have increased by about 40% over the past decade, real estate has proven to be a great investment to keep your wealth stable.
Three in 10 wealthy people have achieved returns of more than 10 percent during the coronavirus pandemic, nearly 2.4 times the rate of the general population. Wealthy individuals secured liquidity during the early stages of the pandemic and took full advantage of the period's bull market to expand their equity investments. As the pandemic period dragged on, they quickly shifted their portfolios to include more savings, bonds, and dollars.
It has been shown that wealthy Koreans are more focused on preserving their capital than seeking higher profits. It is also highly sensitive to external economic variables, such as government tax policies and the domestic and international investment environment.
Among the so-called “young wealthy'' people under the age of 40, the proportion of financial assets was higher than that of real estate. More than 7 out of 10 wealthy young people have invested in overseas stocks, and 20% hold crypto assets.
The “ultra-rich'' who own financial assets of more than 100 billion won or total assets of more than 300 billion won are not only interested in investing in art but also in foreign currency. He says that while growing up in his family, he naturally learned the importance of money.
“Wealthy people tend to value small amounts of money and closely control their lifestyles. These living principles are thought to be the main reason for their wealth,” the book states. . “Not everyone can become wealthy, but I hope this book will help you understand and give you some hints about being rich.”
