At the end of last year, Korea's national net worth increased by 5.3% from a year earlier, totaling 2 quadrillion 4105 trillion won. Per capita household net worth rose by 3.3% to 252.51 million won, surpassing Japan.
According to the '2024 National Balance Sheet (provisional)' released by the Bank of Korea and Statistics Korea, the national net worth at the end of last year recorded 2 quadrillion 4105 trillion won. This is an increase of 5.3% (1217 trillion won) compared to the previous year, showing a wider increase than in 2023 (1.3%). However, the ratio of national net worth to nominal GDP decreased to 9.4 times from 9.5 times the previous year.
National assets consist of nonfinancial assets, such as construction, facilities, inventories, and land assets, and financial assets, including deposits, cash, stocks, and loans. To derive national net worth, the amount after subtracting depreciation from nonfinancial assets and the net financial worth after deducting financial liabilities from financial assets are reflected.
Nonfinancial assets amounted to 2 quadrillion 2485 trillion won, increasing by 635 trillion won (2.9%) from a year earlier. Net financial worth rose to 1620 trillion won, an increase of 582 trillion won (56.0%). The increase in net financial worth was the largest since related statistics began being compiled in 2009. Nonfinancial assets saw increases in productive assets (385 trillion won, 3.9%) and non-productive assets (250 trillion won, 2.1%).
Specifically, construction assets, a subcategory of productive assets, increased by 265 trillion won (3.6%), driving the growth. Non-productive assets saw a significant increase in land assets (250 trillion won, 2.1%). Notably, the land attached to buildings, which makes up the largest portion of land assets, rose by 223 trillion won (2.7%).
The market capitalization of dwellings (7158 trillion won) has switched to an upward trend (+4.2%) following two consecutive years of decline due to rising housing prices. As a result, the proportion of nonfinancial assets also increased to 31.8% from 31.4% at the end of the previous year. The market capitalization of dwellings is the sum of the values of residential buildings and land attached to residential buildings within real estate assets.
Analyzing the factors of increase and decrease in national net worth, among transaction factors (net acquisition of assets, etc.), net acquisition of nonfinancial assets accounted for 192 trillion won and net acquisition of financial assets accounted for 117 trillion won. Among non-transaction factors (land reclamation, asset price fluctuations, etc.), the 'nominal holding gains and losses' due to asset price fluctuations accounted for 352 trillion 500 billion won, while the 'change in asset quantity due to reclamation and change of use' accounted for 90 trillion 600 billion won.
A Bank of Korea official noted, 'The number of investment by overseas Korean retail investors was on the rise, but last year, domestic investors' investments in overseas stocks increased more significantly,' adding that 'the capital gains from the increase in overseas securities rose sharply and currency factors also contributed.'
By sector, the net worth held by households and nonprofit organizations was 1 quadrillion 3068 trillion won, accounting for 54.2% of total national net worth. The general government followed with 5781 trillion 600 billion won (24.4%), nonfinancial corporations with 4619 trillion 500 billion won (19.2%), and financial corporations with 546 trillion won (2.3%).
In terms of growth, nonfinancial corporations' net worth increased the most by 462 trillion 500 billion won (11.1%). Households and nonprofit organizations followed with an increase of 424 trillion won (3.4%), while the general government increased by 321 trillion 700 billion won (5.8%) and financial corporations by 8 trillion 500 billion won (1.6%).
Per capita household net worth was estimated at 252.51 million won, a 3.3% increase from the previous year (244.50 million won). When converted at last year's won-to-dollar exchange rate (1306 won), per capita household net worth is $185,000. This is lower than the U.S. ($521,000), Australia ($401,000), Canada ($295,000), Germany ($229,000), France ($230,000), and the United Kingdom ($206,000), but higher than Japan ($180,000). Household net worth is calculated by dividing the net worth of households and nonprofit organizations by an estimated population of approximately 51.75 million.