Why Are Korean Millionaires Moving Out of South Korea to the United States of America

Many high-net-worth individuals (HNWIs) in South Korea are increasingly relocating abroad, with the United States emerging as a top destination. In fact, South Korea is projected to see a net outflow of around 1,200 millionaires in 2024, the fourth-largest outflow in the world. This trend raises an interesting question: what is driving wealthy Korean millionaires to move out of their home country, and why specifically to the U.S.? The reasons are multifaceted, but they often boil down to a mix of financial considerations and lifestyle choices. Here are the key factors behind this millionaire migration:

• High Taxes in South Korea: Inheritance and gift taxes in Korea can claim up to 50% of a person’s wealth, among the highest rates in the world, drastically reducing what can be passed to heirs.

• Quality of Life: Many wealthy Koreans seek a more relaxed lifestyle, better work-life balance, and greater personal freedoms than the high-pressure environment back home.

• Education for the Next Generation: South Korea’s ultra-competitive education system pushes some families to pursue the more flexible and diverse schooling options available in the U.S.

• Security and Stability: Concerns about regional instability (especially the North Korea threat) and the desire for a safe, politically stable environment make countries like the U.S. attractive.

• Investment Migration Opportunities: Programs that offer residency or citizenship by investment – such as the U.S. EB-5 investor visa – provide an appealing pathway for HNWIs to relocate while growing their wealth.

In this post, we delve deeper into each of these factors and explain why the United States, in particular, has become a prime choice for South Korea’s millionaire emigrants.

High Taxes Are Driving Wealth Abroad

One of the most prominent reasons Korean millionaires look overseas is to escape punitive tax rates at home. South Korea imposes some of the highest inheritance and gift taxes among all OECD countries. The top inheritance tax rate stands at 50% (and even 60% in certain cases for large shareholders), which means roughly half of an estate’s value can be lost to taxes when wealth is passed to the next generation. By comparison, the average inheritance tax rate in OECD countries is around 25%, and even Japan – the only country with a higher rate – tops out at 55%.

Such steep taxes significantly erode the wealth that wealthy individuals can transfer to their children. Millionaire families naturally seek ways to preserve their fortunes for their heirs. Many find the solution in relocating to jurisdictions with more favorable tax policies. By moving their residence (and assets) abroad, they can plan estates under different tax regimes. For example, obtaining U.S. residency has been cited as a strategy: “In Korea, you can lose half of the wealth you intend to pass on through taxes,” one expert noted, whereas by moving to the U.S., wealthy families may protect more of their assets. The United States does levy estate taxes on large estates, but it offers much higher exemptions and numerous estate planning tools that can mitigate the impact. In short, for Korean millionaires, relocating can be as much a financial strategy as a lifestyle choice – a way to ensure their life’s work isn’t cut in half by taxes.

Quality of Life and Personal Freedom

Beyond finances, quality of life is a powerful pull factor. South Korea’s fast-paced, high-pressure culture – sometimes dubbed “Palli-palli” (hurry-hurry) or even “Hell Joseon” by frustrated youth – is known for long working hours, intense competition, and social pressures to succeed. Many wealthy individuals have achieved financial success, but at the cost of enduring this stressful environment. After accumulating wealth, they yearn for a more relaxed lifestyle and personal freedom that they feel can be better found abroad.

In the United States, these families perceive an opportunity for a healthier work-life balance and a more individualistic, open society. The U.S. offers diverse communities and lifestyles: whether it’s the sunny, laid-back culture of California or the cosmopolitan anonymity of New York, there’s a sense that one can break free from the strict social expectations found at home. 

Wealthy Koreans often cite things like less hierarchical work culture, more respect for personal time, and the ability to enjoy hobbies and family life as advantages of living in the West. They are also drawn to the diverse and multicultural environment of the U.S., where they and their children can experience a broader range of perspectives and a more open society. This diversity can be refreshing for those coming from a relatively homogeneous society, offering them comfort that they can fit in and thrive regardless of their background or lifestyle choices.

Ultimately, greater personal freedom – in everything from career choices to lifestyle preferences – is a major reason millionaires are willing to uproot their lives. After working hard in Korea’s intense environment, they want to enjoy their success in a place where they can breathe a little easier. The United States, with its reputation (imperfect as it may be) for championing freedom and innovation, is a natural magnet for those seeking such change in quality of life.

Education and Opportunities for the Next Generation

For many affluent South Korean families, their children’s future is the top priority. South Korea’s education system, while high-performing, is notorious for its rigorous and competitive nature. Students face long school days followed by hours of private tutoring or cram school (“hagwon”) sessions. The pressure to excel in college entrance exams is so intense that it often dominates family life. As a result, some wealthy parents worry about the toll this takes on their children’s well-being and personal development.

The U.S. education system, on the other hand, is seen as offering a more balanced and holistic approach. American schools and universities emphasize extracurricular activities, creativity, and diverse fields of study, alongside academics. This is attractive to parents who want their children to grow up in an environment that encourages innovation, critical thinking, and a semblance of childhood freedom. 

Moreover, degrees from well-known Western institutions carry prestige and global recognition. In fact, South Korea consistently ranks among the top sources of international students in the U.S. – for example, over 40,000 Korean students were studying in the United States in 2021-2022, making Korea the third-largest sender of foreign students to American schools. This trend reflects the high value Korean families place on a U.S. education.

Securing residency in the United States can make it easier for these families to access quality schools and universities for their children. As local experts observe, competition for top universities in Korea is so fierce that many talented students opt for the best schools abroad. 

By moving to the U.S., parents not only spare their kids from the cutthroat educational rat race at home, but also open doors to elite U.S. colleges (sometimes with in-state tuition benefits or easier admissions if they establish residency). Additionally, children raised in the U.S. gain language skills and cultural fluency that can become invaluable assets in a globalized economy. For ambitious families, relocating to the U.S. is an investment in their children’s education and future success.

Security and Political Stability

Another factor prompting wealthy South Koreans to seek new shores is concern over security and regional stability. South Korea’s geographic and political situation comes with unique stresses: the country technically remains in a state of war with North Korea, and periodic provocations from the North – missile tests, nuclear threats, military skirmishes – keep the possibility of conflict in the back of people’s minds. For those with the means to relocate, the idea of living in a place far removed from the shadow of war can be very appealing.

The United States is seen as a safe haven in this context. It is not only distant from the Korean Peninsula, but it also has a reputation for strong domestic security and stable institutions. Many millionaires feel that by establishing a home in the U.S., they are providing their families with a safety net against any potential turmoil in East Asia. Political stability is part of this equation as well. South Korea is a vibrant democracy, but it has its share of domestic political swings and social tensions (from generational conflicts to economic inequality). The U.S., despite its political divisions, is viewed by these families as having a long-established system that protects individual rights and properties robustly.

Reports on global wealth migration have indeed noted that regional threats and uncertainty drive HNWIs to relocate. For example, one recent wealth migration report highlighted that ongoing security concerns in places like South Korea are contributing to the outflow of millionaires. The underlying message is clear: peace of mind is priceless. Wealthy individuals are willing to move their entire lives to a country where they feel their family will be safer and more secure from external threats. The U.S. – with its stable alliances, strong military, and distance from flashpoints like the DMZ – often fits that bill, providing an extra layer of comfort for those who can afford to make the move.

Investment Migration Programs: A Pathway to the U.S.

Finally, the practical means of relocation play a role. Uprooting and moving to another country is complicated, but many nations (including the United States) offer investment migration programs that smooth the way for wealthy immigrants. These programs grant residency – or even citizenship – in exchange for a substantial investment in the host country’s economy. They have become a popular route for HNWIs worldwide seeking global mobility and security.

For South Korean millionaires eyeing the United States, the flagship option is the EB-5 Immigrant Investor Program. By investing a required amount (typically around $800,000 to $1 million) into a qualifying U.S. business or development project that creates jobs, an investor can obtain a U.S. green card for themselves and their immediate family. This program is incredibly appealing to those who have the financial means – it essentially provides a fast-track to permanent residency in America through investment. 

The popularity of such investment visas reflects a broader trend: globally, a record 128,000 millionaires are expected to migrate in 2024, “seeking more favorable tax systems, social security, financial benefits or investment opportunities,” according to Henley & Partners’ analysis. Wealthy South Koreans are very much part of this trend, leveraging their capital to secure a new life abroad.

Other countries also offer investor visa schemes (for example, Australia’s Significant Investor Visa or programs in Canada and Europe), and indeed, the Henley report notes that popular destinations for Korea’s rich include the U.S., Australia, and Canada. However, the United States holds a special allure due to its massive economy and opportunities. Investing in the U.S. not only grants residency but often makes good business sense: many Korean entrepreneurs and conglomerate families see the U.S. as the ideal place to expand their ventures, invest in real estate, or diversify assets. The investment migration route thus offers a twofold benefit – a secure foothold in America and a chance to grow one’s wealth in a dynamic market.

Conclusion: The Appeal of America for South Korea’s Wealthy

The exodus of Korean millionaires is a telling phenomenon that underscores how global our world has become. High taxes, a quest for a better quality of life, educational ambitions, security concerns, and accessible investment visa programs have all coalesced to make countries like the United States extremely attractive to South Korea’s elite. In the U.S., these individuals find a place where they can preserve more of their wealth, enjoy a freer and more relaxed lifestyle, provide top-tier education for their children, and sleep a bit easier knowing their family is half a world away from the next regional crisis.

It’s important to note that leaving one’s home country is rarely an easy decision – these millionaires are not fleeing South Korea so much as they are strategically relocating to secure their family’s future. The United States, with its cultural diversity, economic opportunities, and relatively favorable policies for investors, has become a premier destination for this purpose. As global competition for talent and capital heats up, America’s ability to attract such individuals is a quiet testament to the enduring appeal of the “American Dream” – not just for the poor and middle-class seeking opportunity, but for the wealthy seeking stability and legacy.

If you are considering making the United States your new home – whether for better tax planning, lifestyle, education, or security – our experienced U.S. immigration law firm is here to guide you every step of the way. We specialize in helping high-net-worth individuals and families navigate the complexities of U.S. immigration, including investment visa options like the EB-5 program. Contact us today for a personalized consultation. Let us help you turn your goals into reality and ensure a smooth transition as you embark on this exciting new chapter in the United States. Your future in America awaits – and we are ready to make it happen for you. 

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