Intergenerational Transfers Between Young Adult Children and Their Parents in Korea

Using the first wave of the Korean Longitudinal Study of Ageing, this study investigates intergenerational transfers between young adult children and their parents in Korea, where the influence of Confucianism is strong on the relationship between parents and children. As children grow older, they receive decreasingly less financial support from their parents and instead, children provide increasingly more economic aid to their parents. However, while the amounts of upstream transfers are modest, the amounts of downstream transfers are huge. The results revealed that the altruism, exchange motive, and ‘hyo’ theories can explain the mechanisms underlying intergenerational transfers. Additionally, we found that the two generations with more resources are more likely to exchange economic support to maintain and enhance their class positions.