Single-Person Households 'Money Move'... Reducing Savings and Deposits, Increasing ETFs

Amid a significant rise in single-person households, changes are emerging in preferred financial products. A quantitative survey conducted by KB Financial Group from February 25 to March 23, 2024, targeting 2,000 single-person households aged 25-59 living in major cities, revealed that the proportion of single-person households in South Korea has been steadily increasing. As of 2024, single-person households reached 8.045 million, comprising 36.1% of all households, surpassing the combined share of standard three-person (18.8%) and four-person (12.7%) households. Notably, while past single-person households were often temporary, recent trends show no age or generation-specific patterns. Age-based proportions saw the largest increases in 30s (+13.7%p) and 60s (+10.7%p) compared to 2018, with growth observed across all age groups. However, annual income for single-person households remained insufficient, at 34.23 million won, representing 46.1% of total household income. Financial asset portfolios have shifted, with savings and deposits dropping to 28.3% (down 7.8%p from 2024) while stocks and ETFs rose to 21.1% (up 6.1%p). Cryptocurrencies also increased from 2.2% to 3.5%. The decline in savings was most pronounced among youth, with 20s down 10.6%p and 30s down 9.9%p, while 50s saw the smallest drop. Stock holdings increased across all age groups, peaking in 30s (23.4%) and 40s (22.6%). Financial institution deposits also shifted, with securities firms gaining 5.9%p to 28.6% compared to 2024, driven by increased trust from 30s and 40s generations.