Residence complexes in Seoul, Dec. 7 / Yonhap
Nonfinancial belongings, together with actual property, accounted for almost 65 % of Korean family portfolios in 2024, a report confirmed Monday, highlighting the necessity to diversify funding to reinforce liquidity.
In response to a examine by the Federation of Korean Industries (FKI), non-financial holdings made up 64.5 % of Korean family portfolios, surpassing the US at 32 %, Japan at 36.4 % and Britain at 51.6 %.
The survey additionally discovered Koreans favored money over different securities of their monetary holdings, with money accounting for 46.3 % in 2024, up from 43.4 % in 2020.
Insurance coverage and pension merchandise adopted at 28 %, whereas monetary funding devices accounted for twenty-four % of cashable asset holdings, the report stated.
“Households’ extreme focus in actual property funding is limiting the movement of funds into productive areas resembling company funding,” Lee Sang-ho, head of the FKI’s analysis division, stated in a launch.
“We have to set up a construction during which monetary funding drives company development and family wealth accumulation,” Lee stated.
