SEOUL, Sept. 2 (Korea Bizwire) — Financial assets of Korean households have turned out to be very low compared to other countries.
Experts say that the phenomenon is due to the Korean household practice of having most major assets concentrated on real estate.
According to the Korea Financial Investment Association, the portion of financial assets held by Korean households last year was 26.8 percent, which was significantly lower than the U.S. (70.1 percent), Japan (61.6 percent), England (52.2 percent) and Australia (39.4 percent).
In contrast, 67.8 percent of household assets leaned towards real estate.
Compared to other countries, Koreans had a higher portion of cash and savings than investments in insurance, annuities and other financial investment products, showing a conservative tendency.
The portion of cash and savings in Korean households was 42 percent, ranking highest after Japan (52.5 percent). The portions in the U.S. (13.2 percent), England (23.9 percent) and Australia (22.7 percent) were all under 30 percent.
Officials say that better management of financial assets is required. “Financial assets of Korean households are slowly increasing, and the interest in financial investment products is increasing, but there is a need for more aggressive management of assets within an aging society and a low interest rate environment.”
By Francine Jung (firstname.lastname@example.org)