Analysis of Korean’s Attitudes toward Risk

An individual's risk attitude plays a crucial role in shaping their decision-making process. This study, utilizing data from the 2017-2022 National Survey of Tax and Benefit, explores the determinants of risk preference among Koreans, emphasizing the interplay of gender, age, income, and assets. The empirical findings reveal that women tend to be more risk-averse than men, and both genders become increasingly risk-averse with age. However, as men age, they exhibit a stronger tendency towards risk aversion compared to women, particularly in old age. Additionally, with rising income and assets, both men and women tend to lean towards risk preference, though men show a more pronounced shift. Furthermore, as individuals age and their income or assets increase, they become less risk-averse, especially among the elderly. This study distinguishes itself by utilizing representative secondary data to investigate the determinants of risk preference.