Different with Europe, Korea government can’t guarantee the people’s old life security that normally Korean try to prepare the asset for the old age.
According to the statistics, 90% of the workers are investing their 20% of the salary in the investment. There are diverse parts the people can invest their money in Korea, and people usually use the below 6 ways.
1. Bank deposits or Installment savings: 63.1%
CMS(=Cash Management Service) account is common in Korea and the interest is about 2~3%. About 20 years ago the interest was about 12~14% that many Korean just put their money in the bank account and did not go on the other kinds of the investment but now the interest is getting lower that people are looking for the other ways.
You can check the Korea interest change in above graph. On 1996, the interest was 10~12%, but on 2006 the interest was 4% and now it is about 2~3%.
2. Stock, bond, Fund: 48.5%
Many people purchase the installment fund product and putting their money in each month regularly.
3. Insurance, pension: 33.3%
There is Korea national pension which Korea government manage. Part of the people salary needs to be paid in national pension. It is the obligation that people pay money in national pension but people do not trust if they could receive the payment from the national pension after they retire as it is expected national pension will be exhausted after 50 years. So a lot of Korean prepare the private pension and the variable life insurance.
4. Real Estate & Auction: 24.8%
When you look at the below real estate price change, you can see the Korea real estate price didn’t fall down a lot. Always went up and up. So many people think the real estate price will go up also in future and try to invest the money in house or building purchase.
5. Gold or foreign currency: 2.5%
6. virtual money, Bitcoin: 2%
People’s purpose of the investment is usually for preparing retirement savings, child support expense, purchase house, marriage fund.
Thanks for the reading:)