Younger millionaires favor stocks, financial investments as real estate’s share declines
A significant shift is underway in Korea’s wealth landscape: younger, affluent individuals are increasingly prioritizing financial investments over traditional real estate holdings. This evolving strategy for wealth accumulation and management was highlighted in a recent report released Wednesday, indicating a new direction for high-net-worth individuals in the country.
The ‘2026 Korea Wealth Report’ by the Hana Institute of Finance introduces a new demographic: ‘K-EMILLI’ (Korea Everywhere Millionaires). These are affluent Koreans under 50 with over 1 billion won ($730,000) in financial assets. The report reveals that K-EMILLI are increasingly leveraging financial instruments to expand their wealth, marking a clear departure from the long-standing, real estate-centric investment approaches historically favored in the region.
A key characteristic of the K-EMILLI group, with an average age of 51, is their professional background. They boast a significantly higher proportion of salaried workers and public officials, making up approximately 30 percent of the demographic. This figure is roughly double the representation found among traditional wealthy individuals, who typically comprise professionals or business owners.
Furthermore, about 44 percent of K-EMILLI members reside in mid-sized apartments, typically around 30 pyeong (approximately 99 square meters), a size often considered the ‘national standard’ for housing in Korea.
While initial capital, averaging 850 million won, was primarily accumulated through disciplined savings and deposits, K-EMILLI members are now increasingly relying on robust income growth and strong financial investment returns as the primary engines for significant wealth expansion.
Analyzing their asset portfolios, financial assets held by K-EMILLI show a strategic balance: 54 percent are allocated to savings-type assets, while 46 percent are dedicated to investment assets. Notably, this proportion of investment assets surpasses that observed among traditional affluent groups, underscoring their proactive approach to market participation.
This preference is further evidenced by survey responses: nearly half of K-EMILLI members (48 percent) believe financial investments offer superior wealth generation opportunities compared to real estate, a sentiment echoed by 43 percent of existing high-net-worth individuals.
This paradigm shift is not confined solely to younger wealthy cohorts. Across the entirety of Korea’s affluent population, there has been a noticeable rebalancing of asset portfolios over the last five years. The allocation to real estate has declined significantly from 63 percent to 52 percent, while the share of financial assets has concurrently risen from 35 percent to 46 percent.
The report concludes that the deeply ingrained belief in real estate as a foolproof path to wealth is steadily diminishing. Instead, the focus of comprehensive asset management is decisively shifting towards diversified financial investments. In light of this transformation, the Hana Institute of Finance emphasizes that “Financial institutions must innovate and redouble their efforts to position themselves as indispensable wealth management partners for this evolving affluent demographic.”
jwc
