'Eongrich' earning 400 million KRW annually... Among them, 'Real Estate Gold Spoon' is the top

'Youngrich' with Large Inheritance Share Have Average Assets of 12.8 Billion Won... Twice the Overall Average
Their Assets Centered on Earned Income Are 3.9 Billion Won
More Than Half in Real Estate... Also Invest in Virtual Assets

[Asia Economy Reporter Minwoo Lee] The average annual income of 'Young Rich' individuals under 49 years old with financial assets exceeding 1 billion KRW was 400 million KRW, and their average assets amounted to 6.6 billion KRW. Among them, those who accumulated wealth through inheritance had an overwhelmingly larger average asset of 12.8 billion KRW.

Hana Financial Management Research Institute published the '2022 Korean Wealth Report' on the 13th, analyzing the financial behaviors of wealthy individuals in Korea through a survey. According to the report, the average total assets of the Young Rich were 6.6 billion KRW, with real estate accounting for 60% and financial assets 40% of this amount.

The primary source positively influencing the Young Rich's asset formation was earned income (45%). This was followed by business income (23%), inheritance and gifts from family (18%), and property income (15%). The total asset size showed significant differences depending on the method of asset formation. The average total assets per person among the Young Rich who inherited wealth was 12.8 billion KRW (with over 70% in real estate), nearly double the average asset size. In contrast, the total assets of Young Rich individuals primarily earning from labor income were 3.9 billion KRW, only 60% of the overall Young Rich average (6.6 billion KRW), less than one-third of those who inherited wealth.

The proportion of Young Rich included 31% company employees and 21% professionals in medical and legal fields, accounting for more than half of the total. The 21% share of professionals was more than six times that of the general population of the same age group (under 49 years old).

Last year, the asset that had the most positive impact on the Young Rich's returns was real estate. They owned an average of 1.7 properties per person and preferred investing in commercial real estate excluding residential housing. This contrasts with the 'Old Rich' aged 50 and above, who favored land investments.

Among financial assets, which make up 40% of the wealthy's total assets, deposits had the highest holding ratio at 39%, followed by stocks (27%), funds and trusts (16%), insurance and pensions (16%), and bonds (3%). Hana Financial Management Research Institute analyzed, "The high proportion of cash-like assets among the Young Rich is understood as an intention to avoid missing investment opportunities due to strengthened loan regulations," adding, "Additionally, the Young Rich preferred selectively sharing investment information with acquaintances."

A significant number also invested in virtual assets. 21% of the Young Rich and 5% of the Old Rich invested in virtual assets, but most investments were under 100 million KRW. The main reasons for investment were capitalizing on price volatility for short-term gains and expectations of long-term value appreciation. Both Young Rich and Old Rich expressed plans to maintain their current levels of virtual asset investments due to concerns over unpredictable price volatility. Furthermore, 47% of the Young Rich indicated willingness to invest in new asset classes such as artworks, music rights, and non-fungible tokens (NFTs).

Senior Researcher Seonkyung Hwang of Hana Financial Management Research Institute explained, "While the Old Rich mainly accumulated assets through real estate, the Young Rich generally earned money through ideas," and added, "In the future, investment capital will shift toward the Young Rich's areas of interest (NFTs, artworks, music rights, etc.)."

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