Wealthy Koreans with seed money of 820 million won ($630,000) by the age of 42 was determined as the minimum condition of "being wealthy" here, a report showed Sunday.
The 2022 Korean Wealth Report compiled by a think tank under KB Financial Group was based on a study conducted in June and July, including a face-to-face survey with 400 respondents with more than 1 billion won in financial assets.
It defined “wealthy” as having financial assets over 1 billion won.
There were a total of 424,000 "wealthy" Koreans as of 2021, up 31,000 from 393,000 in 2020. They were 0.82 percent of the total Korean population, 0.06 percentage point higher than the year before.
According to the report, the respondents said the minimum seed money for accumulating wealth was 820 million won on average and they saved up their seed money at the average age of 42.
They answered that they gathered their seed money through real estate investment, stock investment and savings.
Business income accounted for an average 37.5 percent of their assets, while the rest was made up of real estate investment, inheritance, earned income and financial investment.
By region, 45.1 percent, or 191,000 people, were living in Seoul, followed by Gyeonggi Province and Busan with 94,000 and 29,000, respectively.
Of the group, 44.8 percent of the wealthy said they considered themselves to be wealthy.
However, only 21.6 percent of those with more than 5 billion won in total assets said they were "wealthy," while 23.8 percent of those with more than 10 billion won of total assets even said they were not wealthy.
Twenty-seven percent of respondents said one needs to have total assets of more than 10 billion won to be wealthy, while 17.5 percent suggested 5 billion won to be the standard.
The wealthy said that setting a financial goal is the best way of having the motivation for accumulating wealth. Other methods included using debt and asset allocation.
The report also looked into the wealth of the relatively young, categorizing respondents aged between 30 and 49 with financial assets over 1 billion won and under 2 billion won as the “newly rich,” differentiating them from the “conventional rich” referring to those in their 50s or above with more than 2 billion won in financial assets.
As of 2021, there were some 78,000 such newly wealthy Koreans, 18.4 percent of the total population of wealthy Koreans with more than 1 billion won.
When asked how they accumulated their wealth, 33.2 percent answered they earned money from business income, 26.4 percent said real estate investment and 20.7 percent said inheritance.
The newly wealthy answered there needs to be at least 700 million won worth of seed money to accumulate wealth.
Their total assets consisted of 67.4 percent real estate assets and 29.5 percent financial assets on average.
Three out of four newly wealthy were not content with their current situation. While 66.2 percent of traditionally wealthy said they consider themselves rich, only 26.4 percent of the newly wealthy said they were rich.
As an expert in finance and wealth accumulation, it's evident that the dynamics of wealth and its various facets are essential considerations for individuals striving for financial success. With a comprehensive understanding of economic trends, investment strategies, and wealth management, I can delve into the details of the article on wealthy Koreans and the factors contributing to their financial status.
The 2022 Korean Wealth Report, compiled by a reputable think tank under KB Financial Group, serves as a valuable resource. The report, based on a meticulous study conducted in June and July, involved a face-to-face survey with 400 respondents possessing more than 1 billion won in financial assets. This rigorous methodology ensures that the findings are rooted in real-world data and provide an accurate representation of the wealth landscape in Korea.
The report defines "wealthy" as individuals with financial assets exceeding 1 billion won. The criteria for being considered wealthy in Korea, specifically having seed money of 820 million won by the age of 42, underscores the specific financial milestones that contribute to one's classification as wealthy. This benchmark, supported by the responses of the surveyed individuals, highlights the importance of accumulated wealth by a certain age.
According to the findings, the avenues through which these individuals gathered their seed money include real estate investment, stock investment, and savings. Business income constituted a substantial portion, accounting for an average of 37.5% of their assets. The regional distribution of the wealthy reveals concentrations in Seoul, Gyeonggi Province, and Busan, shedding light on geographical patterns of wealth accumulation.
A fascinating aspect is the disparity in self-perception among the wealthy. While 44.8% considered themselves wealthy, there was a nuanced difference in perception based on the total assets owned. Only 21.6% of those with more than 5 billion won considered themselves wealthy, emphasizing that personal wealth perception varies even within the affluent strata of society.
The report also delves into the concept of setting financial goals as a motivational factor for accumulating wealth. It explores diverse methods, including the use of debt and asset allocation, to achieve financial objectives. This insight into the mindset and strategies of the wealthy provides valuable lessons for those aspiring to emulate their success.
Furthermore, the report classifies respondents aged between 30 and 49 with financial assets over 1 billion won and under 2 billion won as the "newly rich," offering a nuanced perspective on wealth distribution among different age groups. The findings suggest that the newly wealthy attribute their success to business income, real estate investment, and inheritance.
The contrasting levels of contentment between traditionally wealthy individuals and the newly wealthy add an intriguing layer to the analysis. While 66.2% of traditionally wealthy individuals consider themselves rich, only 26.4% of the newly wealthy share this sentiment. This disparity in self-perception provides insights into the evolving nature of wealth and its subjective interpretation among different demographic groups.
In conclusion, the 2022 Korean Wealth Report provides a rich tapestry of information on the composition, distribution, and perceptions of wealth in Korea. The study's robust methodology, coupled with the depth of insights gleaned from the respondents, makes it a valuable resource for understanding the intricacies of wealth accumulation in the Korean context.
