South Korea's Top 2.5% Wealth Holders Are 'Millionaires'... Impact of Soaring Asset Prices

"1.05 Million South Koreans Own Assets Worth Over 1 Million USD"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] According to Credit Suisse, a Swiss investment bank, despite the COVID-19 situation last year, the number of adults in South Korea holding assets worth over 1 million USD (approximately 1.1 billion KRW) exceeded 1 million, making up 2.5% of the total adult population as millionaires. This is attributed to the sharp rise in asset prices such as real estate and stocks, and Credit Suisse forecasts that if the current asset price uptrend continues, more than 1.77 million people will become millionaires by 2025.

On the 22nd (local time), Credit Suisse reported in its '2021 Global Wealth Report' that among Korean adults, the number of millionaires with net assets exceeding 1 million USD, combining liquid and illiquid assets, reached 1,051,000, accounting for 2.5% of the total population. The global millionaire population increased by 5.2 million from the previous year to 56.1 million, surpassing 1% of the global adult population for the first time. Among countries, Switzerland had the highest proportion of millionaires among adults at 14.9%, followed by Australia (9.4%) and the United States (8.8%).

By country, the number of millionaires worldwide was led by the United States (21,951,000), followed by China (5,279,000), Japan (3,662,000), Germany (2,953,000), the United Kingdom (2,491,000), and France (2,469,000), with South Korea ranking 11th. In particular, in South Korea, where the proportion of non-financial assets is 62.1%, the rise in real estate prices had a significant impact. The ultra-wealthy with net assets exceeding 50 million USD also increased by 41,420 (about 23.9%) from the previous year to 215,030.

Credit Suisse estimated that the global wealth value increased by 7.4% from the previous year to 418.3 trillion USD last year, and the net asset threshold to be in the top 1% of global wealth holders rose from 988,103 USD a year ago to 1,055,337 USD last year. The average net assets per adult worldwide was 79,952 USD, a 6% increase from the previous year, with Switzerland having the highest average net assets per adult at 673,960 USD.