Even as the Rich Leave, Steadfastly 'Tik Tok Tik Tok'... The Man Who Became China's Richest

41-Year-Old Zhang Yiming, Founder of TikTok, China's Richest
Traditional Tycoons in Real Estate and Food & Beverage Decline

Zhang Yiming (41), the founder of ByteDance, a Chinese IT company famous for the short-form streaming platform 'TikTok,' has claimed the title of 'China's richest person' this year. His net worth is estimated at $49.3 billion (approximately 68 trillion KRW).

According to reports from US CNBC News and UK Sky News on the 29th (local time), Zhang Yiming holds a net worth close to $50 billion, making him the richest billionaire in China. Last year, Zhang ranked 5th in China's wealth rankings, but this year he surpassed Zhong Shanshan, the founder of Nongfu Spring, to take first place.

Until now, the richest person in China had been Zhong Shanshan, who held the top spot for three consecutive years. His net worth this year was estimated at $47.9 billion (approximately 66 trillion KRW), down about 24% from the previous year. This decline was due to recent controversies over pro-Japanese sentiments, consumer boycotts, and a slowdown in profit growth in the first half of the year, which caused a significant drop in stock prices.

Jiang Yiming, ByteDance Founder
Photo by Reuters Yonhap News

Ma Huateng, CEO of Tencent, who was ranked 2nd last year, also dropped to 3rd place. Despite Tencent's strong performance, his assets increased by 13% to $44.4 billion (approximately 61 trillion KRW), but he could not catch up to Zhang Yiming.

Zhang Yiming's TikTok is a platform that has sparked a global craze, not only in China but worldwide. The number of monthly active users worldwide has surpassed 1 billion, maintaining a steep growth trajectory.

Notably, Zhang Yiming stands out as he continues to thrive almost alone while many of China's wealthy face difficulties. This year, the number of individuals in China with assets exceeding $700 million (approximately 969.5 billion KRW) was 1,094, a 12% decrease from the previous year. The total assets of these individuals also declined by 10% to $3 trillion (approximately 4,155 trillion KRW).

TikTok US headquarters, the American branch of TikTok recently involved in legal disputes [Image source=Google Maps]

Regarding this, Rupert Hoogewerf, chief researcher at the Hurun Research Institute, pointed out, "Both the Chinese economy and stock market have had a difficult year, leading to an unprecedented decline in the list of wealthy individuals in three years." He explained the reason for the shrinking asset values in China: "In the past, real estate developers led asset growth, but now it includes technology, home appliances, and new energy sectors," adding, "This reflects the current state of the Chinese economy."

However, hurdles remain for Zhang Yiming, who benefited from the IT boom. TikTok is currently involved in legal disputes over the assets of its North American subsidiary. ByteDance has established 'TikTok US' to operate services in North America, and 'TikTok Europe,' a UK-based entity, to manage operations in Europe and South America.

Among these, TikTok US recorded revenue of $16 billion (approximately 22 trillion KRW) last year and was considered ByteDance's 'golden goose.' However, after the US House of Representatives passed the 'TikTok Ban Act' in March, ByteDance has faced pressure to split and sell its US subsidiary.

If the bill is signed into law by the president and enacted, TikTok must be sold within six months at the latest. Failure to comply will result in TikTok being banned from downloads and updates on US app stores such as Apple and Google. Essentially, this means TikTok would be expelled from the US market.