As published on koreaherald.com, Thursday 4 August, 2022.
The tally for cases of wealth transfers to Koreans aged under 30 surged by 106 percent last year, compared to the previous year, after a gradual increase between 2017 and 2020, data from the national tax agency showed Thursday.
According to the National Tax Service’s data, given to Rep. Kim Hoi-jae of the Democratic Party of Korea, the number of Koreans aged under 30 who reported capital transfers from their parents, grandparents, or others came to 70,115 last year, a 106 percent increase from 34,036 in 2020.
It added that assets worth 11.9 trillion won ($9 billion) were given by their parents or other relatives as a gift, not an inheritance.
This indicates that an average of 170 million won was given to an individual in their 20s, in their teens or those under 10.
Assets gifted in value saw a 143 percent increase from 4.89 trillion won in 2020. On average, the size of gifts grew 18.2 percent from 140 million won per individual last year.
Wealth transfer was active last year as prices of assets, including real estate, surged on high liquidity from record-low interest rates, said Rep. Kim.
Of the 11.9 trillion won, wealth worth 9.1 trillion won was given to 46,756 individuals aged 20-29, 1.8 trillion won to 13,975 individuals aged 10-19 and 926 billion won to 9,384 individuals aged under 10, according to the data.
Recipients of family gifts in their 20s were given assets worth 200 million won on average, while teenagers and children under 10 received 130 million won and 100 million won, respectively.
The data showed that the case numbers of wealth transfer to the corresponding age group have continued to climb from 24,750 in 2017 to 33,697 in 2019.