Samsung Securities Launches Korea's First Investment Partner-Level 'Multi Family Office'

SNI Celebrates 10th Anniversary of Ultra-High Net Worth Service for Assets Over 3 Billion with Launch of 'Multi Family Office'
Providing Top-Tier Services Including Dedicated Management Teams and IB Deal Participation Opportunities for Clients with Minimum 10 Billion Assets

Samsung Securities' dedicated service for ultra-high-net-worth individuals with assets over 3 billion KRW, Samsung Securities SNI, has launched Korea's first investment partner-level 'Family Office' service on its 10th anniversary. PBs dedicated to the SNI service are taking a commemorative photo.

[Asia Economy Reporter Song Hwajeong] Samsung Securities announced on the 27th that it will launch Korea's first investment partner-level 'Multi-Family Office' service to mark the 10th anniversary of SNI, a service for ultra-high-net-worth individuals with assets over 3 billion KRW.

The family office service refers to a specialized asset management service that originated from 'Single Family Offices' established by wealthy individuals with corporate-scale assets in advanced countries such as the United States and Europe. The first single family office was the 'Rockefeller Family Office,' established in the 19th century by the 'Oil King' Rockefeller, who directly hired asset management personnel to exclusively manage the Rockefeller family’s assets. Currently, family offices are mainly established by wealthy individuals such as business owners like Bill Gates who want comprehensive family asset management including succession and social contribution planning, in addition to asset management.

Recently, global investment banks (IBs) such as Goldman Sachs and UBS have introduced multi-family offices that provide dedicated management organizations for individual wealthy clients who feel burdened by establishing their own companies, offering joint investment opportunities and more. A representative example of a multi-family office is UBS’s 2018 project, where it raised $400 million from clients to invest in the development of a landmark building in New York’s Times Square.

Samsung Securities, based on SNI which holds the industry’s largest ultra-high-net-worth client base with 2,300 clients each having over 3 billion KRW and assets totaling 71 trillion KRW, has become the first in Korea to introduce an investment partner-type multi-family office service previously exclusive to global IBs.

Until now, family office services provided by domestic financial institutions were often used to mean investment consulting for premium clients covering investment strategies, taxation, and gifting. However, the family office service launched by Samsung Securities is characterized by organizing dedicated teams for individual clients to provide specialized consulting. Moreover, clients can gain opportunities to participate as partners in various Samsung Securities investment projects like institutional investors. By offering club deals that pool clients’ funds for investment and opportunities to jointly participate in Samsung Securities’ proprietary capital investments, clients can experience an ultra-premium service elevated to the level of investment partners.

To provide such specialized services, SNI recently established a Family Office Secretariat within its strategy department. For each client wishing to join, the secretariat director conducts direct consultations and forms dedicated teams tailored to each client’s needs to provide customized asset management. The dedicated teams include product managers from headquarters, consultants in fields such as taxation and real estate, and IB specialists to prepare for IB deal execution.

This systematic service has gained word-of-mouth among wealthy individuals, and despite a minimum asset requirement of 10 billion KRW, six family office contracts were signed in the first month of service launch, showing a positive response.

Park Kyunghee, Executive Director of Samsung Securities SNI Strategy Department, said, "After operating SNI for 10 years, we confirmed that many clients have demand for family office services at the level of global IBs. We have long researched and meticulously prepared to introduce a true family office that offers opportunities to participate in our investments or club deals, and it will become a core service for the greater leap of Samsung Securities SNI."

Samsung Securities opened SNI Hotel Shilla and SNI Gangnam Finance Center in June 2010, the first dedicated branches for ultra-high-net-worth individuals with assets over 3 billion KRW in the securities industry, ushering in an era of customized asset management centered on ultra-high-net-worth clients. Over 10 years, the number of clients doubled to 2,300, and assets grew 2.2 times to 71 trillion KRW, establishing an unrivaled position in the industry.

Sa Jaehoon, Vice President and Head of Retail Division at Samsung Securities, said, "The 30 billion KRW-plus ultra-high-net-worth brand we established first in the industry has reached its 10th anniversary thanks to the unwavering trust of our clients. Starting with the launch of this family office, we will do our best to become a true life partner who invests and grows together with our clients and to present a new path for the domestic asset management industry."

This content was produced with the assistance of AI translation services.