New Billionaire Heirs Inherit More Than Half of Total Wealth
"Number of Billionaires Inheriting Wealth Expected to Increase"
The number of billionaires worldwide increased by 7% last year, with many of the newly listed billionaires having inherited their wealth, according to a recent study.
On the 1st (local time), Swiss investment bank UBS published its "Billionaires Report," which showed that the number of billionaires last year reached 2,544, a 7% increase from the previous year. A billionaire is defined as an individual whose personal assets exceed $1 billion (approximately 1.3 trillion KRW). The combined wealth of these billionaires amounts to $12 trillion, representing a 9% increase compared to the previous year.
The total assets of the 137 individuals who newly joined the billionaire ranks last year were $291.5 billion (approximately 379.5 trillion KRW). Of this, $150.8 billion was inherited wealth, accounting for more than half of their total assets.
The report analyzed, "Until now, many self-made emerging wealthy individuals increased their fortunes thanks to the expansion of new markets such as the information technology (IT) sector and fluctuations and growth in asset markets. However, now there is an increasing trend of becoming wealthy through inheritance."
It was also noted that the decrease in the number of companies going public last year reduced opportunities for entrepreneurs to grow their wealth. Benjamin Kavali, head of UBS Global Wealth Management, stated, "We expect to see more inherited billionaires over the next 20 years," adding, "More than 1,000 billionaires are expected to pass on approximately $5.2 trillion in assets to their children."
However, Michael Viana, head of strategic client management at the bank, predicted, "Since many heirs are over 50 years old, this trend will not suddenly increase the number of emerging wealthy individuals in their 20s."
Bernard Arnault, Chairman of Louis Vuitton Mo?t Hennessy (LVMH), who became the world's richest person in 2023 [Image source=Yonhap News]
Meanwhile, according to the 2023 global billionaire rankings compiled by the U.S. economic magazine Forbes, the current richest person in the world is Bernard Arnault, chairman of the luxury brand Louis Vuitton Moet Hennessy (LVMH). Arnault's net worth is estimated at $211 billion.
Elon Musk, CEO of Tesla, who held the top spot until last year but dropped to second place, is estimated to have a net worth of $180 billion. He is followed by Jeff Bezos, founder of Amazon, Larry Ellison, chairman of Oracle, and Warren Buffett, chairman of Berkshire Hathaway, with net worths of $114 billion, $107 billion, and $106 billion, respectively.
The country with the most billionaires is the United States, with 735 registered. China (562) ranks second, and India (169) third. Mukesh Ambani, chairman of India's Reliance Industries, ranked 9th in the overall billionaire list, with a net worth of $83.2 billion, making him the richest person in Asia.
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