UK Consulting Firm Outlook Report
1,200 Koreans Moving to the US and Australia... 4th Largest Scale Worldwide
This year, the net outflow scale of wealthy individuals leaving Korea is expected to be the fourth largest in the world. Over the past few years, the net outflow of high-net-worth individuals (HNWIs) from Korea has steadily increased, and this year it is expected to increase by 50% again, reaching an all-time high.
On the 19th, Yonhap News reported that Henley & Partners, a UK-based investment immigration consulting firm, revealed this in the 'Henley Private Wealth Migration Report 2024' released on the 18th (local time).
Henley & Partners cited data from asset information company New World Wealth to analyze the inflow and outflow forecasts of high-net-worth individuals (HNWIs) by country. Here, HNWIs refer to individuals holding investable assets of at least USD 1 million (approximately KRW 1.38 billion). Net outflow is based on those who have stayed in another country for more than six months.
According to the report, Korea's net outflow of HNWIs is expected to reach 1,200 this year, ranking fourth globally. The net outflow of wealthy individuals from Korea has steadily increased, doubling from 400 in 2022 to 800 in 2023, rising to seventh place. This year, it is expected to increase by another 50% compared to last year, forecasting the largest net outflow ever. The destinations for Korea's wealthy are analyzed to be the United States, Australia, and Canada.
The countries with the largest net outflow of high-net-worth individuals ahead of Korea are China (15,200), the United Kingdom (9,500), and India (4,300).
In particular, the UK is expected to see more than double the net outflow of wealthy individuals this year compared to last year. The UK has been a magnet for wealthy people from around the world for decades, but since the 2016 Brexit vote, an 'exodus' of asset holders has been occurring. Over six years from 2017, 16,500 asset holders have left, and the possibility of the opposition Labour Party, which favors wealth taxation, coming to power after next month's general election is also cited as a factor driving asset holders away.
Additionally, Russia ranked fifth with a net outflow of 1,000 this year, but this is a sharp decline compared to 8,500 in 2022 and 2,800 in 2023, when the Ukraine war broke out. Taiwan (400) ranked eighth, and Vietnam (300) tied for ninth.
Dominic Volek, Head of the Private Client Group at Henley & Partners, said, "This year, the total number of migrating asset holders will exceed last year's record of 120,000, reaching 128,000," adding that this year will be a turning point for the movement of wealthy individuals. The main causes of migration include geopolitical tensions, economic uncertainty, and social upheaval.
Top Net Inflow Countries: United Arab Emirates (UAE), United States, Singapore, Canada, Australia
Based on net inflow, the UAE ranks first. The UAE is expected to see a net inflow of 6,700 this year, attracting wealthy individuals by having no personal income tax and continuing efforts to attract global companies. After the Russia-Ukraine war, Russian wealthy individuals flocked there, and recently, migration from the UK and Europe has increased.
Following are the United States (3,800), Singapore (3,500), Canada (3,200), and Australia (2,500). Also, with increased migration of Chinese wealthy individuals after COVID-19, Japan ranked tenth with 400.
Volek noted, "Countries with significant increases in high-net-worth individuals have actively implemented policies to attract them."
Meanwhile, in terms of the number of HNWIs, Korea ranks 15th globally with 109,600. Among them, 233 individuals hold assets over USD 100 million, and 24 hold assets over USD 1 billion.
The country with the most HNWIs is the United States, with 5,492,400, followed by China (862,400), Germany (806,100), Japan (754,800), and the United Kingdom (602,500) in the top five.
Over the past decade since 2013, Korea's number of HNWIs increased by 28%. During the same period, China (92%), India (85%), UAE (77%), Singapore (64%), and the United States (62%) also saw significant growth in HNWIs, while the UK and Japan showed contrasting trends with decreases of 8% and 6%, respectively.
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