Households with larger financial assets grew their wealth faster, according to an analysis of Shinhan Financial Group data. Among those holding between 100 million won and 1 billion won in financial assets, a clear shift emerged from bank deposits into stocks. The change was most pronounced among people in their 20s.
Faster Growth at the Top: 54% Gain for the Wealthiest Tier
Total financial assets rose about 29% between the end of December 2024 and August of this year, the Shinhan Card Big Data Research Institute said on the 21st, based on integrated Shinhan Financial Group data.
Growth was just 9% for the general tier, those holding less than 100 million won in financial assets. By contrast, the mass affluent tier, with 100 million won to less than 1 billion won, saw a 27% increase, while the high-asset tier, holding 1 billion won or more, grew 54%. That made the high-asset tier's growth rate six times that of the general tier.
The high-asset tier's share of total financial assets also rose about 6 percentage points, while the general tier's share fell about 5 percentage points over the same period. Shinhan Card said the data shows a structural change in which customers who already held assets above a certain level accumulated more wealth at a faster pace.
Deposits Down, Stocks Up: A 139% Surge Among Those in Their 20s
The composition of the mass affluent tier's holdings also shifted notably. Fixed-term deposits, in which a lump sum is parked for a set period, declined, while stock holdings rose sharply.
The shift was sharpest among people in their 20s, whose fixed-term deposits fell 34% while their stock holdings jumped 139%.
Those in their 30s cut deposits by 28% as stock holdings grew 124%. A similar pattern held for those in their 40s, with deposits down 29% and stock holdings up 107%.
For those in their 50s, fixed-term deposits fell 22% while stock holdings rose 113%. Among those in their 60s, deposits declined 11% and stock holdings increased 129%.
Those aged 70 and over diverged from other age groups. Their fixed-term deposits rose 10%, and their stock holdings grew 151%, the highest rate of increase of any age group.
Shinhan Card said the shift from deposits into brokerage accounts appears to have occurred across all generations as the era of high interest rates faded and asset markets recovered.
Not Just Stocks: Cash and Installment Savings Held Steady
Still, the mass affluent tier did not funnel all of its money into stocks. Even as equity allocations grew, these households maintained liquid deposits and installment savings they could draw on when needed.
Securities fund holdings rose 26% for those in their 20s and 19% for those in their 30s. Liquid deposits increased 5% and 10%, respectively, over the same period, and installment deposits rose 10% in both age groups.
The buildup in cash-like assets was more pronounced among older savers. Liquid deposits rose 20% for those in their 60s and 37% for those aged 70 and over, while installment deposits increased 2% and 24%, respectively.
Those in their 40s and 50s, by contrast, raised liquid deposits by 3% and 6% but cut installment deposits by 10% and 9%.