Financial firms offer tailored services for ultra-high-net-worth individuals
By Anna J. Park
With the number of ultra-rich individuals as well as the amount of wealth held by them continuing to rise in Korea, demand is increasing for asset management services tailored specifically for these affluent individuals and their families.
Recognizing a niche market opportunity, financial companies have been strengthening their total solutions to meet the financial and investment needs of the affluent group.
Samsung Securities is one such financial firm strengthening its family office services.
The brokerage firm announced Monday that the number of its clients who have joined its Family Office asset management service, designed solely for ultra-rich families, has surpassed 100 families.
The total assets held by these super-rich individuals and families exceed 30 trillion won ($21 billion), which is more than the average amount of assets operated by the country’s top seven mutual aid associations, such as the Korea Teachers’ Credit Union and the Military Mutual Aid Association.
It also means that the average assets held by each ultra-high-net-worth family is about 300 billion won. The minimum requirement to join the family office service is 100 billion won per family.
Samsung Securities launched its family office service in June 2020.
“As the number of ultra-high-net-worth individuals selling their businesses to private equity firms or large corporations increases, the proportion of equity-selling owners among our clients is also expected to grow,” an official from the securities company said.
Other investment companies have also been expanding asset management services to target ultra-rich customers.
Shinyoung Securities has run its Heritage Solution division, which aims to offer a variety of customized solutions for super-rich clients, ranging from taxation, trusts and accounting.
Hana Securities operates its Club1 centers, which target customers with assets exceeding 30 billion won. Hana first opened its first Club1 branch in 2017 in Samseong-dong in southern Seoul, subsequently opening a second branch in Hannam-dong, another neighborhood in Seoul with a lot of wealthy residents, in 2021.
Shinhan Bank has introduced its Shinhan Family Office service in 2022, aiming to provide unique financial partnership services for high-net-worth individuals with financial assets of 10 billion won or more.
According to an annual wealth report published by KB Financial Group, the number of Koreans holding financial assets worth more than 1 billion won increased to about 456,000 as of the end of 2023, a 6.9 percent rise from the previous year.
Among them, the number of ultra-high-net-worth individuals with assets worth 30 billion won or more is estimated to be around 9,000, and these people are the key group of clients seeking tailored family office asset management services.
