April 21, 2022 08:29
Young rich Koreans are worth W6.6 billion on average, while their older peers own W8 billion worth of assets.
But the young and rich surprisingly have more real estate with an average of 1.7 homes compared to 1.5 among their staid elders.
Hana Bank in a report on Wednesday based on a survey of 1,952 clients said some 131 clients of its richest clients are under 40 and 588 over 50.
The two groups could not be more different. Rather than incrementally saving up money, the younger rich tended to boost their wealth quickly through a wide variety of income streams. Earnings from jobs account for the biggest proportion at 45 percent, but three-quarters of them boost their wealth from inheritance, gifts and other assets.
Many earn extra money from rent and stock dividends. Their average annual income from all these sources combined is W400 million, with 25 percent stocks (US$1=W1,235).
The old and rich preferred to park their money in bank deposits, stocks, insurance and pensions, while the young favor money-market funds that can be cashed out quickly. Two-thirds said they share investment information with their friends.
About one-fifth have money in cryptocurrencies compared to a tiny proportion of the old, but most invested less than W100 million.
Banks are having a tough time meeting the ambitious profit targets of young, rich clients, while their older clients are satisfied with five percent annual returns.
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