July 7, 2022

South Korean research institute, KB Financial Group Research Institute reported the number of people in the country with assets of more than 1 billion won ($847,000) increased by over 10 percent last year from a year earlier.

According to the data, last year the number of Koreans with financial assets worth over 1 billion won stood at 390,000, due to liquidity-driven booms in the real estate and stock markets. Thus taking up 0.76 percent of the total population.

Summary of the figures –

• The latest figure has reported risen nearly 39,000 or 10.9 percent from 2019’s tally, the second-highest growth, after the 14.4 percent rise estimated in 2019.
• As per region, 45.5 percent, or 179,000 people with such assets were living in Seoul, followed by Gyeonggi Province with 86,000 and Busan with 29,000.
• The number of extremely wealthy people last year, those with net assets worth $30 million or more came in at 7,800, it accounted for some 0.015 percent of the total population.

The report suggested that a bullish run on the nation’s main bourse has been one of the main reasons of the increase in the country’s value of financial assets.

In January, the benchmark Korea Composite Stock Price Index hit the historic 3,000 mark over hopes of a global economic recovery. In the meantime, at the end of 2020, the rich population’s combined holdings of personal fortunes came around 2,618 trillion won, marking a 21.6 percent rise from the previous year.

According to the report by the institute, around 60 percent of the rich Koreans’ assets were tied to real estate property. While 36.6 percent of them were invested in financial instruments, such as bank deposits, stocks and funds.

Meanwhile, the rich increasingly turned to stock investing riding on ample liquidity due to COVID-19 stimulus measures. Around 40 percent of such population expanded their amount of stock investments throughout this year.

The company’s ninth annual report estimated the figures based on its own survey of 400 rich people whose financial assets exceed 1 billion won and various consumer data compiled by Statistics Korea, Bank of Korea, and KB Financial Group.