Korea projected to see fourth-biggest net outflow of millionaires

A British consulting firm said that Korea is likely to see a net emigration of 1,200 individuals with assets worth $1 million or more this year.

A view of Seoul seen from the sky on May 30 [JOINT PRESS CORPS]

Korea is expected to see a record outflow of millionaires this year, ranking fourth in the world in net loss, according to a report from a British consulting firm.

The Henley Private Wealth Migration Report 2024, published by Henley & Partners on Tuesday, projected a net loss of 1,200 high-net-worth individuals with assets totaling $1 million or more from Korea. The outflow as defined by the investment migration advisory firm tracks the number of millionaires relocating to a new country for more than half a year.

The projected net loss is a new record for Korea. Popular destinations include the United States, Australia and Canada, according to the report.

China took the top spot with a record 15,200 net exits projected this year. The United Kingdom came in second place with a projected net outflow of 9,500 millionaires, also a record, followed by India with 4,300.

As the wealth migration accelerates across the world, a record 128,000 millionaires globally are expected to relocate this year, up from last year’s 120,000, seeking more favorable tax systems, social securities, financial benefits or investment opportunities.

The most popular destination for high-net-worth individuals is the United Arab Emirates with some 6,700 new arrivals expected this year. The United States ranked second with a net inflow of 3,800, followed by Singapore at 3,500 and Canada at 3,200. Australia came in fifth place with 2,500.

The relocation of wealthy individuals constantly accelerated over the past decade before significantly receding during the Covid-19 pandemic period. The figure has rebounded steeply since 2022, and is expected to reach 135,000 in 2025, driven by geopolitical and macroeconomic uncertainties.

"As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty and social upheaval, millionaires are voting with their feet in record numbers," said Dominic Volek, group head of private clients at Henley & Partners, in a release.

"In many respects, this great millionaire migration is a leading indicator, signaling a profound shift in the global landscape and the tectonic plates of wealth and power, with far-reaching implications for the future trajectory of the nations they leave behind or those which they make their new home," Volek said.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]