A South Korean in 40s on average own 410 million won ($370,170) in asset and indebted by 80 million won, mostly to finance housing.
According to a report by Hana Financial Group based on a survey of 1,000 Koreans in their 40s living in Seoul and four other metropolitans in November last year, the respondents hold an average of 410 million won worth assets including cash, real estate, stocks and loans. More than half of them, or 51.6 percent, have assets of less than 300 million won, but 11.8 percent have 1 billion won or above.
Their liabilities reach 80 million won on average, leaving net asset at 330 million won. Five out of 10, or 52.6 percent, have an experience in taking out mortgage loans, and their outstanding balance averages 94 million won.
Forty-something Koreans own 70 million won in financial assets on average. Koreans in their late 40s have 79 million won in financial assets, 29.5 percent higher than 61 million won held by those in their early 40s.
Bank deposits account for 57.7 percent of their financial assets, followed by endowment insurance policies at 18.6 percent, stocks 15.6 percent and others 6.5 percent.
High income earners tend to have more financial assets. About 58 percent of households earning more than 6.27 million won per month, the top 20 percent, own average financial assets of more than 100 million won per household.
About 38 percent of the respondents who have bank loans said their debt has increased due to the Covid-19 crisis. A majority of them, or 74.9 percent, said they have taken out more debts to cover reduced income. The remaining 9.7 percent said they have borrowed more to invest, and 8.9 percent to buy properties.
Eight out of 10 Koreans in their 40s, or 78.2 percent, have stocks, bonds or funds in their investment portfolio. More than half of 57.4 percent said they will expand financial investments. Around 60 percent of non-investors said they are willing to begin investing if they have more assets, time or information.
About 44 percent of the investors said they have increased their financial investments over the past couple of years. Among them, 15 percent said it is less than a year since they started investing. Around 40 percent said their risk-taking tendency has changed recently, with 25 percent said they have become more of a risk taker while just 12 percent said they have become more cautious.
By Kim Yoo-shin and Choi Mira
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]