Average Assets of 6.6 Billion Won for 'Young Rich'... Top Is 'Geumsujeo' (Comprehensive)

Hana Financial Research Institute Publishes 2022 Korean Wealth Report
Analysis of Wealthy Individuals with Financial Assets Over 1 Billion KRW
Inheritance-Based Young Rich Assets Average 12.8 Billion KRW... Twice the Overall Young Rich Average
21% Also Invest in Virtual Assets... Half Consider Investing in NFTs and Artworks

[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 found to be 400 million KRW, with an average asset size of 6.6 billion KRW. Among them, those who accumulated wealth through inheritance had an overwhelmingly larger average asset size of 12.8 billion KRW.

Hana Financial Management Research Institute published the '2022 Korean Wealth Report' on the 13th, analyzing a survey conducted at the end of last year targeting wealthy individuals in Korea (financial assets over 1 billion KRW), the mass affluent (financial assets between 100 million KRW and 1 billion KRW), and the general public (financial assets under 100 million KRW). 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 total.

'Silver Spoon' Young Rich Assets at 12.8 Billion KRW... Twice the Average

The primary source positively influencing the asset formation of the Young Rich was earned income (45%). This was followed by business income (23%), inheritance and gifts from family (18%), and property income (15%). There was a significant difference in total asset size depending on the method of asset formation. The average total assets of Young Rich individuals who inherited wealth were 12.8 billion KRW (with over 70% in real estate), nearly twice the average asset size of all Young Rich (6.6 billion KRW). In contrast, the total assets of Young Rich whose main income was earned income were 3.9 billion KRW, less than one-third of those who inherited wealth.

The proportion of Young Rich included 31% company employees and 21% medical and legal professionals, accounting for more than half of the total. The 21% share of professionals was more than six times higher than that of the general public under 49 years old.

About 21% of Young Rich and 5% of Old Rich also invested in virtual assets. They expected capital gains from volatility and long-term value appreciation. However, most investments were under 100 million KRW, and due to concerns about price volatility, they planned to maintain their investment scale. Additionally, 47% of Young Rich expressed 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 Old Rich mainly accumulated assets through real estate, Young Rich generally earned money through ideas," adding, "In the future, investment capital will shift to areas of interest for Young Rich (NFTs, artworks, music rights, etc.)."

One-Third of the Wealthy Achieved High Returns During the Pandemic

Provided by Hana Financial Management Research Institute

Among wealthy individuals with financial assets exceeding 1 billion KRW, about one-third (29%) increased their asset size by more than 10% during the two-year COVID-19 pandemic period. This significantly outpaced the mass affluent (22%) and the general public (12%).

In particular, wealthy individuals who actively changed their asset composition ratio showed better asset growth performance than those who did not. Among wealthy individuals who did not change their asset composition ratio, 22% achieved more than 10% asset growth. In contrast, 31% of those who changed their asset composition ratio achieved over 10% high returns. This indicates that those who actively responded to changes achieved positive results.

The asset that had the greatest impact on asset growth for high-return wealthy individuals was real estate. More than half (57%) cited real estate as the top asset. This was followed by direct stock investment (16%).

Meanwhile, wealthy individuals generally held a negative outlook on the stock market. The proportion expecting a decline was 30%, including 26% expecting a gradual decline and 4% expecting a rapid decline. In contrast, the mass affluent and general public expected declines at rates of 19% and 21%, respectively. Given the pessimistic economic outlook, more than half planned to maintain their current asset composition for the time being. Those planning to reduce real estate holdings and increase financial assets accounted for 19%, while 15% intended to maintain their asset composition but change their investment content.

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