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Using the 1998 Korean Household Panel Study, this article examines the factors affecting the likelihood of being a saver and identifies the factors influencing the savings rate. About 69% of Koreans are savers, and they save about 24% of their household income. Household income, number of earners, and planning to live independently after retirement are positively associated with being savers. Households headed by those aged 40 and older are less likely to save than households headed by those between ages 30 and 39. The savings rate is positively related to household income, the amount of liquid assets, and the number of earners in the household. Households headed by older individuals tend to have a lower savings rate. The savings rate is higher for households saving for children or retirement than for those saving for a precautionary measure. The savings rate is lower for landowners. Implications are discussed.

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