The Wealthier They Are, the Less They Believe in the "Invincibility of Real Estate"... Top Investment Priority Has Changed This Year

As the domestic stock market experiences an unprecedented boom, wealthy individuals in South Korea are increasing their allocation to capital market investments rather than real estate or deposits. There is a growing tendency to rely on financial investments over real estate as a method of wealth accumulation. Notably, about half of these wealthy individuals have joined the ranks of the affluent within the past 10 years, and many of them are so-called "ordinary wealthy" people with regular salaried jobs.

In front of a real estate agency in Seoul. Photo by Yonhap News

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On April 15, Hana Bank Hana Financial Research Institute published its "2026 Korea Wells Report." Now in its 18th year, this edition focuses on the asset management strategies of wealthy individuals for this year, as well as a detailed look at how those under 50 who have recently accumulated significant wealth have built their fortunes and developed their investment philosophies.

According to the report, nearly half of the 738 "wealthy" respondents-defined as those with financial assets of at least 1 billion won-believe the economy will not worsen compared to last year. The proportion expecting deterioration in both the real economy and the real estate market dropped sharply (by about 20 percentage points), while expectations for improvement more than doubled.

With hopes for economic recovery, the wealthy appear poised to adjust their portfolios more actively than last year. In fact, 39% indicated an intention to rebalance their portfolios this year. Notably, the intention to reduce real estate holdings and increase financial assets was 1.8 times higher than the opposite response.

On the 14th, after the KOSPI briefly surpassed the '6,000 points' mark during the session but closed around 5,960, dealers are working in the dealing room at Hana Bank in Jung-gu, Seoul in the afternoon. Photo by Yonhap News

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Perceptions are also shifting. 43% of the wealthy answered that "financial investment is now better than real estate as a way to make money," a figure significantly higher than the 31% of the general public who responded similarly. The report also notes that some younger wealthy individuals stated during the survey, "We are preparing for retirement with financial assets rather than home ownership."

Preferences for financial products have also changed significantly. Deposits and bonds, which ranked first and second in investment intentions last year, fell to fourth (35%) and seventh (24%) place this year, respectively. The preference for safe assets has shifted toward exchange-traded funds (ETFs) and stocks. In particular, the proportion of wealthy respondents willing to expand or newly invest in ETFs surged from 29% to 48% within the past year. Stock investment intentions also increased from 29% to 45% over the same period.

On the other hand, intentions to invest in real estate declined compared to last year, despite a reduction in negative outlooks for the market. The proportion interested in purchasing real estate fell from 43% last year to 37% this year.

Hana Financial Research Institute analyzed that, "While government regulations on real estate make decisions difficult, the burden of rising prices, the slump in commercial real estate, and a preference for financial investments are collectively influencing these trends."

Strategic succession planning to help children grow their assets is also becoming commonplace. 80% of the wealthy have established concrete plans for asset transfers, and nearly half have already gifted a portion of their assets.

2026 Korea Wells Report. Hana Bank Hana Financial Research Institute.

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About half of the wealthy have achieved their status within the past 10 years, and 40% of these are under the age of 50.

The report's in-depth analysis of this group found that employees and public servants-so-called "salaried workers"-make up a much larger share (30%) compared to the general wealthy population (16%). While most live in Seoul, more reside in the surrounding metropolitan area, such as Gyeonggi and Incheon, compared to the broader wealthy population. Only 83% own their homes, which is lower than the 86% home ownership rate among the general wealthy. The most common residence was apartments of 30 pyeong or less, so-called "national standard size units," with 44% living in such apartments.

The report refers to these individuals as "K-EMILLI" and examines their economic power and wealth-building processes. The term "EMILLI" was coined by U.S. best-selling author Chris Hogan in 2019 to describe ordinary people who have amassed significant wealth.

Households categorized as K-EMILLI reported earned income averaging 240 million won. However, as 40% also have business income, their total annual income averages 580 million won. Especially among those who have become wealthy recently, 48% reported having "other sources of income" in addition to earned income, indicating that the more recently they joined the ranks of the wealthy, the more diverse their income sources have become. Their total assets averaged 6 billion won, with financial assets of about 2.6 billion won.

They accumulated seed money averaging 850 million won through savings, then grew their assets through investment. While half received an inheritance or a gift, 72% responded that they built their wealth through "entirely or largely their own efforts."

The most significant trigger for wealth accumulation was improved income-such as business booms or salary increases-cited by 44%. Additionally, they reported that generating returns through financial investments and amassing capital through saving had a synergistic effect. Notably, methods of accumulating wealth have become more active and diversified compared to the past, with 6% citing tangible assets such as gold, silver, and art, and 3% mentioning investments in startups and venture companies.

To increase their assets, 83% reported studying taxes and financial investments, rebalancing their assets, and reducing expenditure. The report also noted that efforts to secure additional income through self-development or side businesses are more active among this group. When asked about the best way to increase wealth, 48% said financial investment is better than real estate, a figure higher than the 43% among the general wealthy. The tendency to concentrate investments in "areas they know well" based on sufficient understanding, rather than diversifying, was also stronger among this group (26%) compared to the general wealthy (20%).

Hwang Seon-Gyeong, Research Fellow at Hana Financial Research Institute, said, "K-EMILLI represents a new type of wealthy individual who, moving beyond traditional business success or inheritance, is actively building wealth through their own perspective and financial investments. As key economic players in society, they are redefining the concept of wealth and leading new pathways to wealth creation."

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