Domestic Household Assets 60% Real Estate

Last year, household assets accounted for the highest proportion of non-financial assets, including real estate. It is analyzed that the proportion of non-financial assets held has also increased due to the recent rise in real estate prices. The survey found that the largest number of other financial assets held cash and deposits.

According to the “2022 Major National Financial Assets Comparison” released by the Financial Investment Association on the 25th, as of the end of last year, financial assets accounted for 35.6% of domestic household assets and 64.4% of non-financial assets including real estate.

The proportion of non-financial assets is higher than that of other major developed countries. The proportion of non-financial assets of major countries is 61.2 percent in Australia, 46.2 percent in the UK, and 28.5 percent in the U.S.

The high proportion of non-financial assets, such as real estate, among domestic households, was also affected by the recent rise in the real estate market. It is analyzed that the proportion of non-financial assets held has increased slightly over the past four to five years as real estate prices have risen steadily.

On the other hand, the ratio of financial assets is lower than that of major countries. In particular, financial assets in the U.S. and the U.K. account for 71.5 percent and 53.8 percent, respectively.

Among the financial assets held by domestic households, the ratio of cash and deposits was the highest at 43.4 percent. The number of insurance and pensions that followed was 30.4 percent, 무직자 소액대출 down 0.4 percent from the previous year.

The proportion of financial investment products with the lowest share was 25.4 percent, the same as the previous year. Among them, the share of stocks was 20.8%, which has been steadily increasing since 2018 (15.2%). Both bonds and funds fell 2.3 percent year-on-year.

According to a survey of the proportion of financial assets of major countries, Korea and Japan had high proportion of cash and deposits, the U.S. had financial investment products, and the U.K. and Australia had high proportion of insurance and pension.

Overall, the asset structure of major countries showed a similar trend for two years from 2020. From 2020 to the peak of COVID-19, it is analyzed that the proportion of cash and deposits increased due to sluggish consumption and increased savings rates. Last year, the value of real estate assets rose due to the boom in the real estate market, and non-financial assets increased.

Experts noted that while Korea’s household assets have a small proportion of financial assets compared to major countries, they focused on non-financial assets such as real estate. Some argue that the proportion of non-financial assets should be reduced in the long run and that financial assets should be distributed evenly.

An official of the Korea Financial Investment Association said, “In order to distribute household assets stably, it is necessary to reduce the proportion of non-financial assets in the long run and allocate them to financial assets.”

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