South Korea's national net assets reached 24,561 trillion won at the end of last year, according to the 2025 National Balance Sheet (provisional) released by the Bank of Korea and the National Data Agency on the 22nd. The assets increased by 531 trillion won (2.2%) from the previous year, but the growth rate slowed to less than half of the previous year's 5.0%. The slowdown occurred as net financial assets declined due to a sharp rise in foreign investors' domestic stock holdings, driven by domestic stock market gains that significantly outpaced overseas markets. This contrasts with the previous year when overseas stock investments and dollar strength drove national net asset growth.
National Net Assets Reach 24,561 Trillion Won
National net assets stood at 24,561 trillion won at the end of last year, representing a 531 trillion won (2.2%) increase from the previous year. Non-financial assets increased by 857 trillion won (3.8%), centered on land assets, expanding from the previous year's increase of 582 trillion won (2.7%). Among the increase in national net assets, non-transaction factors (asset price fluctuations) amounted to 212 trillion won, significantly reduced from the previous year's 833 trillion won. Transaction factors (net acquisition of financial assets) increased, centered on equity securities and investment funds (172 trillion won).
Net Financial Assets Decline 326 Trillion Won
Net financial assets totaled 1,271 trillion won, decreasing by 326 trillion won (-20.4%) from the previous year, reversing from the previous year's increase of 559 trillion won (53.8%). The Bank of Korea explained that the gap in domestic and overseas stock price appreciation rates had a decisive impact on the net financial asset decline, rather than exchange rates. Nam Min-ho, team leader of the Bank of Korea's National Balance Sheet Team, stated that "last year the won appreciated 2.2% against the dollar, but the exchange rate impact was limited, and as the KOSPI appreciation rate significantly exceeded US and European stock markets, the increase in external financial liabilities exceeded the increase in external financial assets."
Last year, the KOSPI rose 75.6%, while the US S&P 500 rose only 16.4% and Europe's Euro Stoxx 50 rose 18.3%. Accordingly, non-transaction changes in financial assets shifted from a 440 trillion won increase last year to a 486 trillion won decrease this year. Nam stated that "the KOSPI appreciation rate reached 4.6 times that of the S&P 500 and 4.1 times that of the Euro Stoxx 50, and that gap was directly reflected in the valuation of financial assets and financial liabilities," adding that "the increase in financial liabilities significantly exceeded the increase in financial assets."
Real Estate Assets Increase 709 Trillion Won
Real estate price appreciation supported national net asset growth. Land market value totaled 12,660 trillion won, increasing by 554 trillion won (4.6%) from the previous year, and housing market value also reached 7,710 trillion won, increasing by 571 trillion won (8.0%), with both showing expanded increases from the previous year. The Bank of Korea explained that land asset growth was led by housing price increases centered in Seoul and Gyeonggi. It added that increases in cultural and recreational land values, centered in Yongin and Hwaseong in Gyeonggi, also contributed to land asset growth.
Real estate assets totaled 17,836 trillion won, increasing by 709 trillion won (4.1%) from the previous year, and their share of non-financial assets also rose from 76.3% to 76.6%, up 0.3 percentage points. This was influenced by the expansion of land asset growth from 1.8% to 4.6%, although building asset growth slowed.
Household Net Assets Rise 9.0 Percent
Household assets increased significantly. The net assets of households and non-profit organizations totaled 14,200 trillion won, increasing by 1,167 trillion won (9.0%). Per capita household net assets amounted to 274.75 million won, up 9.1% from the previous year's 251.84 million won, with the increase expanding from the previous year's 3.0%. This value was calculated by dividing the net assets of households and non-profit organizations by the estimated population of approximately 51.58 million. Based on last year's average exchange rate, per capita household net assets were at the level of 193,000 dollars, slightly exceeding Japan.
Bank of Korea Projects Continued Trends
Regarding this year's outlook, Team Leader Nam stated that "in the first half of this year as well, the trend of domestic stock price appreciation rates being higher than overseas continues," adding that "if the current trend continues until year-end, there is a possibility that the net financial asset decline trend will continue in next year's national balance sheet." However, he added that "as exchange rate increases act as a factor for external net financial asset growth, at year-end the relative movements of stock prices and exchange rates will determine the results."
FAQ
What caused South Korea's net financial assets to decline last year?
Net financial assets decreased by 326 trillion won (-20.4%) primarily because the KOSPI rose 75.6%, significantly outpacing the US S&P 500's 16.4% and Europe's Euro Stoxx 50's 18.3% gains. This gap caused foreign investors' domestic stock holdings to increase substantially, leading the increase in external financial liabilities to exceed the increase in external financial assets.
How much did per capita household net assets increase in South Korea?
Per capita household net assets reached 274.75 million won, representing a 9.1% increase from the previous year's 251.84 million won. Based on last year's average exchange rate, this equated to approximately 193,000 dollars, slightly exceeding Japan's level.
