households-financial assets

SEOUL, March 13 (Yonhap) -- South Korean households' proportion of financial assets lags far behind those of global peers as they focus more on property and other tangible assets, a report showed Wednesday.

Local households' financial assets came to 24.9 percent of their total assets in 2012, compared to 68.5 percent for the United States and 59.1 percent for Japan, according to the report by the Korea Financial Investment Association.

Cash and bank deposits accounted for the largest 45.5 percent of South Korean households' financial assets, compared with a mere 14.3 percent and 23 percent tallied by the U.S. and Australia, the report added.

Stocks and bonds accounted for 27.1 percent of local households' financial assets, compared to a whopping 53.9 percent tallied by the U.S.

In contrast, the portion of non-financial assets, which include property holdings, came to 75.1 percent over the cited period, the report showed.

The imbalance came as real estate had been considered as the most guaranteed means of investment in South Korea, as the property market prospered for decades following the country's brisk growth, until it began faltering in the past few years on a slowing economy.

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