[Rich Report] Seed Money Prepared at an Average Age of 41... Gifted at 65

Seed Money Securing Methods: Business Income 32.3%
Followed by Inheritance and Gifts 25.4%

[Asia Economy Reporter Kim Min-young] Wealthy individuals in South Korea generally accumulate their seed money (initial capital) to become rich at an average age of 41. The average age at which they transfer their wealth to their children was found to be 65.2 years.

These results were revealed in the "Korean Wealth Report" released on the 2nd by Hana Financial Management Research Institute under Hana Bank. The report analyzed survey data from 393 Hana Bank private banker (PB) clients holding financial assets of over 1 billion KRW. Their total assets averaged 16 billion KRW, and their annual income averaged 477 million KRW. However, the survey was conducted over about one month starting from mid-December last year, before the outbreak of COVID-19 in South Korea.

The average age of the wealthy survey participants was 68, and the average age at which they secured their seed money was 41.3 years.

For wealthy individuals under 40, the average age of securing seed money was 34.8 years. Those in their 50s accumulated seed money at 39.7 years, those in their 60s at 42.5 years, and those aged 70 and above at 44.7 years.

The primary means of securing seed money was business income, accounting for 32.3%. This was followed by inheritance and gifts at 25.4%, with earned income and real estate investment showing similar proportions at 18.7% and 18.2%, respectively. Only 5.1% secured seed money through financial asset investments.

The institute interpreted this as indicating that "inheritance and gifts are not the primary means to become wealthy, with business income having the highest proportion, and other earned income and real estate investment also being chosen as the top means, showing that not only 'gold spoons' become rich."

Business income also had a significant impact on asset growth after securing seed money. From the average age of 41 to the current average age of 68, the most important primary means of accumulating assets was business income (31.5%). This was followed by real estate investment at 25.3%, inheritance and gifts at 18.9%, earned income at 15.1%, and financial asset investment at 9.0%. Ultimately, owning a business is the most reliable way to accumulate seed money and assets to become wealthy.

The average age at which wealthy individuals transferred assets to their children was approximately 65.2 years, and the average age of the children receiving the inheritance was 34.9 years.

This content was produced with the assistance of AI translation services.