[Rich Report] Monthly Average Spending of 11 Million Won... Enjoying Cultural Life and Taking Care of Health

Wealthy Residents in Gangnam 3 Districts Spend 12.52 Million KRW Monthly
Other Wealthy Seoul Residents Spend 10.12 Million KRW
Capital Area 9.92 Million KRW, Provinces 8.3 Million KRW in Order

[Asia Economy Reporter Kim Min-young] It has been revealed that wealthy individuals spend an average of 11 million KRW per household per month.

This result was shown in the "Korea 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 banking (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, this survey was conducted over about one month starting from mid-December last year, before the outbreak of COVID-19 in Korea.

The 11 million KRW is approximately 4.3 times higher than the average monthly household consumption expenditure of 2.54 million KRW reported by Statistics Korea in 2018. The consumption propensity of the wealthy was 28% (monthly average income of 39.77 million KRW), whereas that of general households was 53% (monthly average income of 4.77 million KRW), indicating that although the absolute spending scale of the wealthy is large, their consumption relative to income is low, leaving sufficient funds for savings and investments.

By region, wealthy individuals in the three Gangnam districts of Seoul (Gangnam-gu, Songpa-gu, Seocho-gu) had the highest average monthly expenditure at 12.52 million KRW, compared to wealthy individuals in other regions. The average monthly expenditure of wealthy individuals in other parts of Seoul was 10.12 million KRW, 9.92 million KRW in the metropolitan area, and 8.3 million KRW in provincial areas.

Furthermore, wealthy individuals plan to increase spending on cultural leisure activities (73%), medical and pharmaceutical expenses (37%), and private education for children (27%).

Regarding items to reduce spending, 54% of respondents chose clothing and accessories, followed by 33% planning to cut back on dining out expenses.

The institute stated, "In summary, while spending related to leisure activities for retirement preparation centered on active seniors continues, it is expected that consumption characteristics emphasizing health will further increase."