SEOUL, Feb. 6 (Korea Bizwire) — “Wealthy households” in South Korea spent nearly four times more per month than the national average, a report showed Wednesday.
According to the 2019 Korean Wealth Report issued by KEB Hana bank, households that owned more than 1 billion won (US$898,500) worth of financial assets spent an average of 12.26 million won per month last year.
Official state data showed that average household spending came to 3.32 million won in 2017. The figure for last year has yet to be released.
The report was based on a survey by the lender carried out between October and December last year and involved 922 customers who used its private banking service.
Those living in Seoul’s affluent areas of Gangnam, Seocho and Songpa turned out to spend an average of 13.66 million won per month, while the monthly expenditure among the rich in other areas in Seoul stood at 11.42 million won.
The total assets each respondent owned stood at 13.34 billion won, and their yearly income reached 450 million won, the report showed.
Those classified as being rich had 2.31 cars per household on average and changed their vehicles every 5.9 years, according to the report, which also found that Mercedes-Benz was the most favored brand, accounting for 31.8 percent of the cars owned, followed by BMW, Hyundai Motor or Kia Motors and Audi.
Asked about their major sources of income or investment tools, the largest number, 27.2 percent, pointed to investment in real estate. This was followed by 20 percent citing running their own businesses; 18.9 percent saying salaries or other labor income; 18.6 percent saying financial investment; and 15.2 percent citing inheritance.
Of the total, 57.3 percent said they either inherited or received assets from members of their family.
As for their future asset management plans, respondents said they will allocate 48 percent of their wealth for their old age and give 43.3 percent of their assets to their offspring or other family members.