The report highlighted that the top 1 percent consisted of over 209,000 households, with an estimated population of 586,000 individuals. (Image credit: Kobiz Media)
SEOUL, May 21 (Korea Bizwire) — According to a recent study by Hanwha Life Insurance, the wealthiest individuals in South Korea possess rapidly growing assets, highlighting significant income inequality within the country.
As of 2021, the top 0.1 percent of South Koreans boasted a net worth exceeding 7.68 billion won, while the top 1 percent accumulated more than 2.92 billion won (US$2.21 million). Further data indicated that the top 5 percent had assets of over 1.35 billion won, and the top 10 percent owned assets worth more than 900 million won.
Net worth represents an individual’s wealth after deducting debts and borrowings from their total assets, including properties, vehicles, and liquid funds.
The report highlighted that the top 1 percent consisted of over 209,000 households, with an estimated population of 586,000 individuals. On average, the heads of these households were approximately 63.5 years old, and 72 percent resided in metropolitan areas.
Notably, the average annual income of the top 1 percent households was 3.5 times higher than that of all households. (Image credit: Kobiz Media)
Additionally, the average annual income of the top 1 percent households amounted to 215.71 million won, which was 3.5 times higher than the average household income of 61.25 million won. The majority (88.5 percent) of the top 1 percent owned their homes, while only 7.7 percent rented and 3.8 percent leased their residences.
Retirement trends among these households revealed that the median retirement age was 70.7 years, surpassing the average for all households at 68.2 years. Moreover, the minimum monthly living cost for these households ranged from 3.59 million won to a maximum of 5.22 million won.
Notably, the average annual income of the top 1 percent households was 3.5 times higher than that of all households. However, their minimum retirement expenses were 1.66 times higher, and their optimal retirement costs were 1.71 times higher.
“The wealthy individuals in the top 1 percent primarily accumulate wealth through active financial investments such as real estate and stocks,” stated an insurance expert, further noting their increasing inclination towards preparing for retirement by enrolling in individual pension plans.
Ashely Song (ashley@koreabizwire.com)
