Shift in Korean Wealth Management and Rapid ETF Market Expansion
According to recent reports by Hana Financial Group and Hana Bank, wealthy Koreans under the age of 50 with over KRW 1 billion in financial assets are increasingly prioritizing financial investments over real estate. These high-net-worth individuals are diversifying their portfolios with tangible assets such as gold and silver, as well as engaging in angel investing and venture capital. Their allocation to financial assets has grown from 35% to 46%, and interest in Exchange Traded Funds (ETFs) is expected to remain strong through 2026.
Meanwhile, South Korea’s active ETF market has surged, surpassing KRW 100 trillion in net assets. Demand for active ETFs is rising due to their potential for excess returns via managed stock selection, particularly in popular growth themes like artificial intelligence and robotics. However, concerns remain over their higher volatility and a continued need for broader product diversification.
The total market capitalization of domestic ETFs has also exceeded KRW 400 trillion, buoyed by a strong KOSPI index and robust semiconductor shares. KODEX 200 leads in popularity, followed by TIGER US S&P 500 and TIGER Semiconductor TOP10, all ranking among the top ETF products.
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Emerging wealthy prefer stocks and ETFs over real estateIt has been revealed that asset owners below 50, who have recently joined the ranks of the wealthy with financial assets over 1 billion KRW in the past decade, are focusing more on financial investments than real estate this year. The analysis suggests they are utilizing various investment methods, from tangible assets like gold, silver, and art to private investment partnerships, startups, and ventures instead of safe assets.