SEOUL, Feb. 5 (Korea Bizwire) – A new report has revealed that well-off parents in South Korea typically spend between 600 and 700 million won ($642,700) for their children’s marriage, with nearly half of their children already having inherited property.
Account holders with over 1 billion won in assets spent an average of 570 million won last year to buy a home for their newly betrothed son, 97 million won for wedding gifts and house essentials, and 75 million won for the wedding ceremony itself, according to the report from KEB Hana Bank and the Hana Institute of Finance.
The figure dropped slightly for daughters, with a total of 457 million won spent on a new home, home essentials, and a wedding ceremony and gifts.
The numbers are up by over 200 million won compared to 2013, when wealthy South Korean parents paid out 424 million won and 416 million won to cover the marriage of their sons and daughters, respectively.
Compared to data from marriage agencies, the rich spend nearly four times more than the average marriage expense of 170 million won for South Korea men, while 4 in 10 wealthy parents cover all marriage expenses.
The report also revealed that over 4 in 10 children from wealthy households in South Korea have already inherited some of their parents’ assets, with property being the most popular asset to inherit.
The number varied, however, depending on the value of accumulated assets, with 72.2 percent of those with over 10 billion won having already given their children their inheritance before they died.
The figure dropped to 52.4 percent among wealthy households with between 5 billion won and 10 billion won in assets, and 35.5 percent among those with 1 billion won to 3 billion won in assets.
Among the types of inheritance, property was preferred by 39.7 percent, while cash and savings were preferred by 30.3 percent. Insurance, stocks, funds and bonds were also among the most popular types of assets to inherit from parents, while just over 6 percent preferred gold and jewelry.
Cash and savings were the most popular asset for children to inherit from their wealthy parents in South Korea in 2015, signaling a change of attitude over the last two years.
“As property prices recover, parents seem to have considered the possibility of children and grandchildren’s assets growing in value,” the Hana Institute of Finance said.