The #1 additional investment for the rich in Korea is ‘real estate’

The #1 additional investment for the rich in Korea is ‘real estate’

Entered: 2024-04-25 18:21:21

Hana Bank, analysis of 746 people
Small and medium-sized apartments and small buildings

The number of wealthy people in Korea who expect the economy to improve this year has increased compared to last year. Real estate was selected as the number one asset with additional investment intention.

Hana Bank’s Hana Financial Management Research Institute announced on the 25th that it has published the ‘2024 Korea Wealth Report’, which analyzes the financial behavior of Korea’s rich. The report was prepared targeting 746 rich people with financial assets of more than 1 billion won.

According to the report, the rich expected the real economic situation to be unfavorable this year. 63% of respondents assessed that the real economy would worsen, 26% would maintain it, and only 11% would improve.

Regarding this year’s asset portfolio plan based on economic forecasts, 7 out of 10 rich people (70%) responded that they would keep it the same. There are more rich people taking a wait-and-see approach compared to the previous survey, which was 5 out of 10.

The number one asset with the highest intention to make additional investments this year was real estate (24%), and the second place was deposits (22%). The most common real estate willing to purchase was small and medium-sized apartments, followed by land and small buildings. On the other hand, the response that there are no additional investment plans this year was approximately 16%, a significant increase compared to the previous survey (5%).

Additionally, rich people who expect high returns tend to have a high proportion of liquid assets and actively invest in stocks and funds. In addition, it was analyzed that the willingness to utilize real assets such as gold and works of art was also high.

The report analyzed, “In line with the increasing number of responses saying that there are no plans to rebalance assets this year, it seemed that the situation was judged as one in which no significant positive news could be expected.”

Meanwhile, Hana Bank private bankers (PBs) selected bonds, exchange-traded funds (ETFs), and foreign currencies as assets to keep an eye on this year.

Reporter Kim Jin-ho [email protected]