Aerial view of apartment complexes in western Seoul (Yonhap)
The 2022 Korean Wealth Report compiled by a think tank under Hana Bank was based on a survey of 1,952 Koreans over the age of 19 in December last year. It classified 708 respondents with personal assets over 1 billion won as “wealthy”, and of the group, 131 people between the ages of 19 and 49 as “young” and 577 people over the age of 50 as “old”. “.
Real estate accounted for an average of 60% of the 6.6 trillion won in assets of wealthy young people, while the rest was made up of financial assets, including stocks, according to the Hana Institute of Finance. Among financial assets, equities accounted for an average of 25%. Some 65% of wealthy young people held foreign assets, including overseas stocks and real estate.
Some 21% of wealthy young people invested in virtual assets such as cryptocurrency, but the average investment size was around 100 million won. Some 47% said they plan to invest in new types of virtual assets such as non-fungible tokens, but most intend to keep investing at current levels due to volatilities .
Overall, wealthy young people each own 1.7 homes and 37% live in the affluent Gangnam neighborhood. They preferred investing in commercial real estate over living spaces and 34% chose real estate as their future investment choice among other assets.
Among wealthy young people’s sources of income, 45% said annual salary, while 23% said business income. Some 18% mentioned inheritance from family members and 15% mentioned income from property.
A gap existed between the average wealth held by wealthy young people who inherited and those who did not. Those with inheritance-backed assets held an average of 12.8 trillion won, with real estate accounting for 70%, while those without had an average of 3.9 trillion won.
Some 31% of wealthy young people were employed by a company, while 21% of them were classified as well-paid professionals such as doctors and lawyers.
“We were able to find out through Hana Bank’s private bankers that young rich people got rich from ‘ideas’, while old rich people made money from hard work,” said Hwang Sun-kyung, senior researcher at the Hana Institute of Finance.
“From now on, the market and the investment will revolve around the interest of young rich people,” she added.
By Jung Min-kyung ([email protected])