Wealthy Property Owners Expediting 'Money Move' to Financial Products
Amid recent tightening of real estate regulations and the growing tax burden, wealthy investors in South Korea are rapidly shifting their capital from property assets to the stock and financial products markets. Jeong Bo-hyun, Head of Tax Center at NH Investment & Securities, notes that post-tax yields have become a primary factor in investment decisions, especially as the policy environment evolves. As a result, interest is moving away from property investments toward a wider array of financial products, including ETFs and ELS.
NH Investment & Securities is actively addressing demand for intergenerational wealth transfers by operating tailored asset transfer consulting lounges that cater to both retired and 'echo generation' clients. This trend highlights a transition from a traditional focus on real estate towards more liquid and diversified investments. The shift of investment criteria from capital gains toward after-tax returns is driving increased demand for varied financial instruments. Ultimately, this evolving landscape is expected to enhance capital flows into the broader financial market and necessitate a re-evaluation of asset management strategies across the industry, with intergenerational wealth transfer consulting emerging as a key feature of the wealth management market.
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“Selling Gangnam Property for ETFs... Inquiries Flood from Super Rich in their 60s” [Investment 360] - The Herald EconomicJeong Bo-hyun, head of NH Investment & Securities' Tax Center, stated in a recent interview with The Herald Economic that the 'money move' from real estate to financial assets among high-net-worth individuals is accelerating.
Investors in their 60s sell Gangnam house and turn to ETFsAmong multi-home owners, quite a few are selling their properties stating that buying another house only increases their tax burden and they wish to invest in stocks instead, says Jeong Bo-hyun (pictured), Head of NH Investment & Securities Tax Center.