'Young rich' under 50 show strong appetite for virtual assets, overseas stocks
More wealthy South Koreans are eyeing diversification of their investments, seeking out safe-haven assets such as gold and bonds in their portfolios instead of real estate, a traditional investment here, research conducted by a think tank under Hana Financial Group showed. The wealthy are increasing their stake in cryptocurrency as well.
The Hana Institute of Finance released the 2025 Korea Wealth Report Wednesday. This year, the online survey was conducted on 3,010 Hana Bank customers in December.
Of the respondents, 884 with over 1 billion won ($702,100) in financial assets -- including cash, bonds and stocks -- were classified as "wealthy." Those with between 100 million won and 1 billion won in financial holdings -- 1,545 of the respondents -- were defined as "well-off."
While 40.4 percent of the wealthy responded they are likely to up their savings this year, 32.2 percent also answered they are likely to invest in gold, a staple safe-haven asset. Thirty-two percent and 29.2 percent showed an inclination to invest in bonds and exchange-traded funds, respectively.
"The wealthy are trying to minimize the risk amid uncertainties through diversified investments," the think tank assessed.
This year, the wealthy are less inclined to make new investments in real estate. The wealthy’s inclination to purchase real estate stood at 44 percent, inching down from 50 percent last year. The inclination to sell, on the other hand, rose from 31 percent to 34 percent on year, according to the report.
“Though the wealthy -- who are accustomed to building wealth on real estate -- had prioritized real estate investment rather than financial assets, they are showing a different stance this year,” the think tank viewed.
With major economies stepping up to embrace cryptocurrency in their regulatory boundaries over the years, more are showing interest in the investment tool.
Of the "well-off" respondents, one-third had experience investing in virtual assets. The amount of the virtual assets owned by the respondents rose by a yearly average of 15 percent in the past three years.
Some 34 percent of the virtual asset investors held more than four types of cryptocurrencies. Over 70 percent of the investors have put in more than 10 million won in crypto.
Over five out of 10 virtual asset investors responded they are to continue their investments in crypto this year. Three responded they stood neutral.
While profitability was the main reason for taking interest in virtual assets, increased investment accessibility and the growth potential of cryptocurrency were also cited as reasons to invest.
"The wealthy anticipating growth of virtual assets shows the sector has matured. Yet, the polarization for preference was distinct with the lack of a regulatory safety net and understanding of the new technology,” Yoon Sun-young, a researcher at the think tank, said.
The "young rich," respondents in their 40s or younger with financial assets over 1 billion rose by a yearly average of 6 percent in the past five years. They were strongly inclined to invest in foreign equity, planning to increase the foreign equity investment to 40 percent of their portfolios.
"The wealthy are showing stronger interest in financial investments and the young rich are leading the shift. They are leading investment trends such as crypto and are strongly inclined to use financial investments to increase assets," Hwang Sun-kyung, a researcher at the think tank, said.
By Im Eun-byel (silverstar@heraldcorp.com
