Published : 2013-10-09 19:42
Updated : 2013-10-09 19:42
Deposits by the rich in private banking accounts reached a record of over 150 trillion won ($139 billion) in the first half of this year.
In a report to the National Policy Committee lawmakers of the National Assembly on Wednesday, the Financial Supervisory Service, the country’s financial regulator, said that some 2,600 people in the top income bracket deposited a total of 153.5 trillion won into their private banking accounts in the first half of 2013.
Private banking deposits increased about 21 percent in the first half from 2010 when deposits by the rich began to climb as banks started to boost private banking services as new niche business areas.
Deposits by the “super-rich” with the means to deposit more than 10 billion won reached 10.1 trillion won in the first half, accounting for about 7 percent of the total in the private banking sector.
Their deposits increased more than 23 percent in the first half from 8.2 trillion won in 2010.
There are around 500 super-rich, accounting for only 0.0019 percent of banks’ total private banking customers.
This means that each super-rich customer deposited an average of about 20 billion won.
Korea Development Bank saw the biggest increase in private banking, of 400 percent, with deposits from the rich reaching more than 700 billion won in the same period, followed by the Industrial Bank of Korea whose private banking deposits reached about 82 billion won, up 200 percent.