This study addresses the issue of changing patterns in the household portfolio composition from 1993 to 1998 using Daewoo Panel data set. The empirical analyses lead to the general conclusion that Korean households are very risk averse, and the main t...
This study addresses the issue of changing patterns in the household portfolio composition from 1993 to 1998 using Daewoo Panel data set. The empirical analyses lead to the general conclusion that Korean households are very risk averse, and the main type of households' asset is the real estate, mostly related to the housing. The degree of inequality in asset holding is much greater than that of income whether we take account of only financial assets or the assets in general including real estate. Also we find that there is a negative and significant relationship between total value of assets and the increase in the value of financial assets, which suggests the changes in asset composition, notably from financial assets to the real estate, occur quite frequently in many household.