Korean Wealthy's Real Estate Assets Reach 2,802 Trillion Won... Up 10.2% YoY

KB Financial Group Publishes '2024 Korea Wealth Report'

The real estate assets of wealthy Koreans increased by 10.2% compared to last year. Their most preferred alternative assets are gold and jewelry, and as they have experienced profits through financial investments, their tendency toward conservative investments has decreased while their confidence in investment knowledge has increased. Additionally, they believe that one must have total assets of at least 10 billion KRW to be considered wealthy.

KB Financial Group published the "2024 Korea Wealth Report" on the 22nd, which closely analyzes the perceptions and behaviors of wealthy Koreans and presents asset management methods helpful to those aspiring to become wealthy. Now in its 14th year of publication, this report was created based on a survey and in-depth personal interviews with 400 wealthy individuals who possess both financial assets and real estate assets exceeding 1 billion KRW each.

According to the report, the number of wealthy Koreans this year is estimated at 461,000, accounting for 0.9% of the total domestic population. This represents only a 1% growth compared to 456,000 last year, marking the lowest growth rate since statistics have been compiled. Their real estate assets amounted to 2,802 trillion KRW, increasing by 10.2% year-on-year, supported by an increase in corporate-owned real estate. Financial assets reached 2,826 trillion KRW, up 2.9% from the previous year.

83.2% of wealthy Koreans reported having experience investing in alternative assets. Their top preferred alternative assets are gold and jewelry, which showed overwhelming investment experience (77.8%) and the highest future investment intention (38%). Art pieces are currently attracting attention as the best investment destination. Virtual assets were highly evaluated for their potential as digital gold. Among those interested in investing in unlisted stocks, which are showing signs of recovery in investment sentiment, tax benefits (55%) were cited as the number one reason for investment.

Real estate assets of wealthy Koreans increased by 10.2% compared to last year. Provided by KB Financial Group

The proportion of wealthy Koreans who have experienced profits through financial investments has increased. In the past year, 32.2% of wealthy individuals experienced gains from financial investments, while only 8.6% experienced losses. Those with expectations of a financial market recovery showed a decrease in conservative investment tendencies (down 7.3 percentage points from the previous year) and an increase in confidence in investment knowledge (respondents rating their financial investment knowledge as 'high level' or above increased by 14.2 percentage points compared to the previous year).

Wealthy Koreans believe that one must have total assets of at least 10 billion KRW to be considered wealthy. On average, they accumulated 740 million KRW by the age of 42 and identified the driving forces for substantial asset growth as an annual surplus income of 76 million KRW that can be invested, an asset allocation strategy that first accumulates financial assets and then shifts a portion to real estate assets, and a debt utilization strategy that supports real estate purchases.

Their investment stance for next year is to maintain the current investment level amid increasing domestic and international uncertainties. Opinions on adding or withdrawing funds coexist in stocks and savings deposits, reflecting divergent market outlooks. In the short term, they expect high returns from stocks (35.5%) and gold and jewelry (33.5%), while in the mid-to-long term, they anticipate high returns from residential housing (35.8%) and stocks (35.5%). The top area of interest in asset management was domestic real estate investment (40.0%), followed by tangible asset (gold and jewelry) investments, which have steadily risen in interest ranking (7th in 2022, 4th in 2023, and 2nd in 2024).

Hwang Won-kyung, head of KB Financial Management Research Institute, stated, “It appears that Korea’s declining population has begun to affect the number of wealthy individuals, and the financial investment destinations of the wealthy have diversified into alternative asset areas. We also confirmed a high expectation for professional asset management services that combine technology and human intervention.” He added, “This report, which offers a diverse perspective on how wealthy Koreans have accumulated wealth, will greatly contribute to institutional support for effective asset management for all citizens and the development of financial products and service models.”