Posted August. 05, 2015 07:22,
A rich man in his mid-50s recently purchased five small apartments near Gimpo Airport worth 1 billion won (859,107 U.S. dollars). Money came from the interim retirement benefits he received last year and his deposit and installment savings. He expects to earn 50 million won (42,955 dollars) to 60 million won (51,546 dollars) annually from monthly rent, or an investment return of 5-6 percent. Previously, I had invested in bank deposits and principal-protected equity-linked securities, but as interest rates plunged I turned to profitable real estates, he said.
In order to examine the investment trends of wealthy people, Dong-A Ilbo reporters recently asked private bankers at KB, Shinhan, Woori and Hana Bank and Industrial Bank of Korea to conduct a survey of wealthy people with financial assets of over 1 billion won (859,107 U.S. dollars). The result was that conservative people who had mainly invested in bank deposits were shifting their portfolio to financial investment products such as stocks and bonds as well as profitable real estate. The ultra-low interest rates are prompting a movement of money saved long in banks.
More than half (52.2 percent) of respondents said they increased investments into stock and bond markets, real estate and real assets (gold, art work, etc.) in the past year, and reaped high returns form stocks, equity funds, equity-linked securities and domestic real estate. They said they plan to further increase investments into financial products (32.6 percent), real estate and real assets (19.8 percent).