[Edaily Reporter KIM HYE-SEON ] Robert Kiyosaki (79), author of the global bestseller “Rich Dad, Poor Dad,” has sparked a buzz by revealing that he is in debt to the tune of $1.2 billion (approximately 1.6 trillion won).

However, this amount does not represent debt that Kiyosaki alone must repay; rather, it is the total debt associated with real estate holdings he shares with co-investors.
According to reports on the 6th by U.S. publications such as *Vanity Fair* and the *New York Post*, Kiyosaki appeared on the investment podcast “Get Rich Education” last June and revealed that he carries approximately $1.2 billion in debt. At the time, he noted that he had long studied real estate and debt management, and warned general investors not to follow his approach exactly.
Kiyosaki has never viewed debt as something to be avoided at all costs. He has long emphasized the concept of “good debt”—arguing that leveraging debt to purchase income-generating assets, such as real estate, is different from debt incurred for consumption. In fact, he has grown his wealth by taking out additional loans secured by the rising value of his real estate and using those funds for other investments.
While this may appear similar to what is commonly referred to as “gap investment” in Korea, the structure is different. While “gap investment” involves purchasing a home using a tenant’s jeonse deposit to minimize one’s own capital, Kiyosaki’s approach involves buying real estate with money borrowed from financial institutions and generating profit from the rental income it produces. Although both are forms of “leverage investing” in that they involve purchasing assets worth more than one’s own capital, the methods of raising funds differ.
Kim Kiyosaki, his ex-wife and current business partner, explained in an interview with Vanity Fair that this debt arose from a joint investment structure. Kiyosaki, along with other investors, owns an apartment complex comprising approximately 1,500 units, and the $1.2 billion represents the total debt associated with this real estate portfolio. *Vanity Fair* estimated that Kiyosaki’s personal share of the debt is significantly smaller than the total amount.
Kim also explained that Kiyosaki has a tendency to deliberately highlight shocking figures to attract attention. The phrase “$1.2 billion in debt” is intended to grab people’s attention and then explain the difference between investment debt and consumer debt.
Kiyosaki also diversified risk by establishing a separate limited liability company (LLC) for each property. This created a sort of “firewall” to ensure that problems with one real estate investment would not affect others. However, critics point out that because this approach relies on high leverage, the risk can increase if real estate prices or cash flow deteriorate.
Kiyosaki’s business has also a history of actually undergoing bankruptcy proceedings. Rich Global LLC, one of his companies, filed for bankruptcy protection in 2012 after being ordered to pay approximately $24 million to Running Annex. At the time, the bankruptcy involved the corporation, not Kiyosaki personally.
Kiyosaki rose to prominence as a leading author in finance and self-help after his 1997 book, *Rich Dad, Poor Dad*, sold over 44 million copies worldwide. Since then, he has continued to emphasize an investment philosophy that advocates holding assets—such as real estate, gold, silver, and Bitcoin—that are expected to generate cash flow or appreciate in value.