Recent data reveals that less than 1 percent of the South Korean population, specifically the top wealth holders, possess nearly 60 percent of the total financial assets of all households. Their combined financial assets amount to 2,747 trillion won (US$2.11 trillion), with real estate assets reaching 2,543 trillion won.
According to the “2023 South Korea Wealth Report” released by the KB Financial Management Research Institute on Dec. 18, the number of “wealthy individuals” in South Korea holding financial assets of 1 billion won or more this year amounted to 456,000, representing 0.89 percent of the total population.
Compared to last year’s 424,000 individuals, the figure increased by 32,000, or 7.5 percent, to reach 456,000 this year. The proportion of the wealthy to total population increased by 0.07 percentage points compared to last year’s 0.82 percent, marking the lowest growth rate since 2019.
This year, the total financial assets held by wealthy individuals in South Korea amounted to 2,747 trillion won. This represents a decrease of 136 trillion won, or 4.7 percent, compared to the 2,883 trillion won recorded last year, which is the first decline in four years since 2019. The research institute attributed this decrease to the impact of rising interest rates, leading to a decline in the value of stocks and bonds.
The total financial assets of wealthy individuals in South Korea, amounting to 2,747 trillion won, constitute 59.0 percent of the total financial assets of all households in the country, which is 4,652 trillion won. In other words, the 0.89 percent of the population own nearly 60 percent of total household financial assets.
When comparing these wealthy individuals across three groups based on financial assets -- asset holders with assets between 1 billion won and less than 10 billion won, high-net-worth individuals with assets between 10 billion won and less than 30 billion won, and ultra-high-net-worth individuals with assets of 30 billion won or more, the asset proportion of the ultra-high-net-worth individuals was overwhelmingly significant.
The asset holders numbered 416,000, constituting 91.2 percent of all wealthy individuals. They held assets totaling 1,061 trillion won, occupying 38.6 percent of the total financial assets of the wealthy. High-net-worth individuals numbered 32,000, or 6.9 percent, holding assets of 558 trillion won, representing 20.3 percent of the total. Ultra-high-net-worth individuals numbered 9,000, making up 1.9 percent of all wealthy individuals. Their share of the entire South Korean population was 0.02 percent. These individuals possessed assets totaling 1,128 trillion won, accounting for 41.1 percent of the total financial assets of the wealthy.
Out of 4,652 trillion won of the total financial assets of all households in South Korea, asset holders accounted for 22.8 percent, high-net-worth individuals for 12.0 percent, and ultra-high-net-worth individuals for 24.3 percent, respectively. In other words, the top 0.02 percent of the population in South Korea held approximately one fourth of the total household financial assets in the country.
The average financial assets per wealthy individual stood at 6.02 billion won. This represents a decrease of 770 million won compared to last year’s figure of 6.79 billion won. The average financial assets per individual for asset holders were 2.55 billion won, while high-net-worth individuals held an average of 17.62 billion won. Ultra-high-net-worth individuals possessed an average of 131.39 billion won per person.
This year, the total real estate assets held by wealthy individuals in South Korea amounted to 2,543 trillion won, marking a 7.7 percent increase compared to last year’s figure of 2,361 trillion won. Compared to 1,641 trillion won in 2019, the figure represents an increase of approximately 900 trillion won. The growth rate was lower than 18.6 percent in 2021 and 14.7 percent last year, attributing to the impact of a sluggish real estate market. However, despite this, the overall asset size increased.
Among the total real estate assets, those registered under individual names accounted for 1,607 trillion won, representing 63.2 percent. Real estate assets registered under corporate names amounted to 936 trillion won, constituting 36.8 percent.
The real estate assets held by the asset holder group amounted to 1,434 trillion won, marking a 15.1 percent increase compared to the previous year. In contrast, the real estate assets of high-net-worth individuals and ultra-high-net-worth individuals decreased by 0.5 percent year-on-year, reaching 1,109 trillion won. The research institute explained, “Asset holders have many real estate assets with small individual values, such as individually registered residential homes, non-residential homes, and commercial properties. However, high-net-worth individuals and ultra-high-net-worth individuals have more corporate-registered real estate assets with significant individual value, such as high-priced homes, land, and commercial buildings.”
The proportion of real estate assets to total assets was 60.3 percent for asset holders and 48.2 percent for individuals classified as high net worth or above.
Breaking down the total assets of wealthy individuals in South Korea, real estate accounted for 56.2 percent, financial assets for 37.9 percent, and the remainder consisted of memberships, artwork, and other items. The proportion of real estate assets in the wealth of individuals increased to 59.0 percent in 2021 before slightly decreasing in the past year to 56.5 percent in the current year.