Rich Investors Transform Real Estate
- As economic headwinds gather strength, affluent investors in South Korea are increasingly turning to safer havens like deposits, gold, and bonds, according to a new report.
- the 2025 Korea Wells Report, published by Hana Bank's Hana Financial Research Institute, delves into the financial behaviors of the wealthy.
- The report offers an in-depth look at asset management strategies, investment trends among those in their 40s, and attitudes toward virtual assets, also known as cryptocurrency.
Wealthy Investors eye Safe Assets Amid Economic Uncertainty
Table of Contents
- Wealthy Investors eye Safe Assets Amid Economic Uncertainty
- Wealthy Investors in South Korea: Navigating Economic Uncertainty
- What are wealthy Investors Focusing on in South Korea?
- What is the 2025 Korea Wells Report?
- Are wealthy Investors Pessimistic About the Economy?
- Where are Wealthy Investors putting Their Money?
- are Real Estate Investments Losing Favor?
- What About Cryptocurrency?
- Is Cryptocurrency Considered High-Risk?
- Do Wealthy Investors Plan to Continue Investing in Cryptocurrency?
- What About Stock Investments?
As economic headwinds gather strength, affluent investors in South Korea are increasingly turning to safer havens like deposits, gold, and bonds, according to a new report. Real estate, once a favored investment, is losing its luster among this demographic.
2025 Korea Wells Report Key Findings
the 2025 Korea Wells Report, published by Hana Bank’s Hana Financial Research Institute, delves into the financial behaviors of the wealthy. The study surveyed 884 high-net-worth individuals with over 1 billion won in financial assets. It also included responses from 545 individuals with between 100 million and 1 billion won, and 581 members of the general public.
The report offers an in-depth look at asset management strategies, investment trends among those in their 40s, and attitudes toward virtual assets, also known as cryptocurrency.
Dim Outlook for Real Estate
A significant majority of wealthy individuals anticipate a downturn in both the broader economy and the real estate market this year. According to the report, nearly 75% of respondents expect economic conditions to worsen, while almost 64% foresee a decline in real estate values.This pessimistic outlook is driving a cautious approach to portfolio adjustments; roughly 66% plan to maintain their current asset allocation.
Among those considering changes, 15.2% intend to reduce their real estate holdings and increase their allocation to financial assets. Conversely, only 8.4% plan to decrease financial assets in favor of real estate.
Flight to Safety: Deposits, Gold, and bonds
Deposits are the most favored investment for 2025, with 40.4% of respondents expressing interest.Despite anticipated interest rate fluctuations, many wealthy individuals prioritize liquidity amid economic uncertainty. Gold and bonds are also attracting significant attention, with 32% of respondents viewing them as stable investments during a potential recession.
Exchange-Traded Funds (ETFs) garnered interest from nearly 30% of respondents, while individual stocks appealed to 29.2%. This suggests a preference for stable, index-linked returns over riskier individual stock picks. Real estate ranked lower, with only 20.4% considering it a primary investment among the 12 asset classes surveyed.
Shifting Stock Preferences
last year, wealthy investors were twice as likely as the general public to hold overseas stocks, with over 20% having international equity exposure compared to just 6%. This year, the wealthy are considering shifting their domestic-to-overseas stock allocation from 75:25 to 60:40. Sectors of interest include facts technology, particularly data, robotics, and semiconductors.
Financial Assets on the Rise
The proportion of financial assets in wealthy individuals’ portfolios continues to grow,increasing from 46% in 2023 to 49% last year. While deposits and stocks each account for roughly one-third of financial assets,the share of stocks has increased notably,from 8% in 2023 to 13% last year. Investment returns on financial assets also rose from 8% to 12% during the same period.
Real Estate: A Cooling Market?
Intentions to purchase real estate have decreased from 50% last year to 44.3% this year.Conversely, the willingness to sell real estate has edged up from 31% to 33.6%. While interest in real estate investment has waned, analysts note that it remains a significant component of wealthy individuals’ portfolios.
Despite the overall economic instability last year, some wealthy individuals still found opportunities for profit in real estate, according to the report.
Cryptocurrency: Proceed with Caution
attitudes toward virtual assets are evolving. Among wealthy and affluent individuals with over 100 million won in financial assets, cryptocurrency ownership increased from 12% in 2022 to 18% last year. Including those with prior experience, over one-third of respondents have some exposure to cryptocurrency.
Though, a significant majority – seven out of ten – view virtual assets as high-risk, comparing them to gambling. Still, a small percentage, 9.2% of the wealthy and 7.4% of the general public, acknowledge the potential for growth in virtual assets, with some considering them for long-term portfolio diversification.
The average cryptocurrency investment among the wealthy is 42 million won, more than double the previous figure of 20 million won. Last year, 64% of cryptocurrency holders reported profits. Approximately 50-60% of cryptocurrency investors intend to continue investing in the coming year.
What are wealthy Investors Focusing on in South Korea?
As economic uncertainties loom,affluent investors in South korea are increasingly prioritizing safer investment options. The primary focus is shifting towards assets like deposits, gold, and bonds, according to the 2025 Korea Wells Report by hana Bank’s Hana Financial Research Institute. Real estate, once a favored investment, is losing its appeal among this demographic.
What is the 2025 Korea Wells Report?
The 2025 Korea Wells Report provides an in-depth analysis of the financial behaviors of wealthy individuals in South Korea. The study surveyed 884 high-net-worth individuals with over 1 billion won in financial assets, 545 individuals with assets between 100 million and 1 billion won, and 581 members of the general public. The report examines asset management strategies,investment trends,and attitudes toward cryptocurrency.
Are wealthy Investors Pessimistic About the Economy?
Yes, a notable majority of wealthy individuals anticipate economic headwinds.Nearly 75% of respondents expect economic conditions to worsen, and almost 64% foresee a decline in real estate values, as reported by the 2025 Korea Wells Report.
Where are Wealthy Investors putting Their Money?
The “flight to safety” is evident in the investment choices of wealthy individuals. deposits are the most favored investment for 2025, with 40.4% of respondents expressing interest. Gold and bonds are also attracting significant attention, with 32% viewing them as stable investments during a potential recession.Exchange-Traded Funds (ETFs) garnered interest from nearly 30% of respondents, and individual stocks appealed to 29.2%.
are Real Estate Investments Losing Favor?
Yes, interest in real estate is declining. Intentions to purchase real estate have decreased from 50% last year to 44.3% this year. Conversely, the willingness to sell real estate has edged up from 31% to 33.6%. Only 20.4% consider it a primary investment.
What About Cryptocurrency?
Attitudes toward virtual assets are evolving. Cryptocurrency ownership among wealthy individuals with over 100 million won in financial assets increased from 12% in 2022 to 18% last year. Including those with prior experience, over one-third of respondents have some exposure to cryptocurrency. The average cryptocurrency investment among the wealthy is 42 million won, more than double the previous figure of 20 million won. 64% of cryptocurrency holders reported profits last year.
Is Cryptocurrency Considered High-Risk?
Yes, the majority view cryptocurrency as high-risk. A significant majority – seven out of ten – view virtual assets as high-risk, comparing them to gambling.
Do Wealthy Investors Plan to Continue Investing in Cryptocurrency?
Despite the risks,approximately 50-60% of cryptocurrency investors intend to continue investing in the coming year,according to the report.
What About Stock Investments?
Wealthy investors are considering shifting their domestic-to-overseas stock allocation from 75:25 to 60:40. Sectors of interest include technology, especially data, robotics, and semiconductors.