[This Person] What Is the Secret to Stock Investment Success of Kang Bangcheon, Chairman of Asset Plus Asset Management, the 'Warren Buffett of Korea'?

‘1004 Island’ Shinan-gun Amtado native, Chairman Kang Bang-cheon, who invested 100 million KRW in preferred stocks during the IMF financial crisis and earned 15.6 billion KRW, recognized as an 'Investment Genius' and the only Korean among the '99 Greatest Investors in the World' including Warren Buffett, publishes his second book Kang Bang-cheon's Perspective... Masterpiece released after 6 years following Value Investing with Kang Bang-cheon

[Asia Economy Reporter Park Jong-il] A boy who was in the first grade of elementary school, born on Amtaedo Island in Shinan-gun, Jeollanam-do, known as the ‘1004’ island, and who developed an interest in the world by listening to the KBS and MBC radio noon news broadcast in front of the only pharmacy in his village, has become a leading figure in domestic value investing, earning the nickname ‘Korea’s Warren Buffett.’

This is the story of Kang Bang-cheon, chairman of Asset Plus Asset Management. During the IMF crisis, Chairman Kang had confidence that the government under President Kim Dae-jung would overcome the economic crisis. Starting with seed money of 100 million won (actual personal capital of 40 million won), he bought preferred shares of securities companies (which tend to lead when the economy recovers) at 800 to 1,200 won, and famously earned a huge sum of 15.6 billion won, a well-known anecdote among investors.

After graduating from university and gaining fame as a fund manager in the securities industry, Chairman Kang recently published an investment strategy book summarizing over 40 years of running an investment management company under his own name.

First, Chairman Kang named four mentors (two objects and two people) who shaped who he is today. He cited the radio and maps as objects that nurtured his imagination about the world during his childhood.

He also shared an interesting story about meeting Allan Gray, chairman of the world’s most famous direct sales asset management company, and deciding to partner with him. However, just before signing the contract, he found a clause that would bind him to the company, and despite the large sum of 70 billion won at the time, he rejected it and chose ‘freedom,’ demonstrating his unwavering principles and stubbornness.

The fourth mentor he named was the great Steve Jobs. Chairman Kang said, “My fourth mentor is Apple founder Steve Jobs. I have never met him in person, but the new world he created gave me great inspiration and opened new horizons for investment. It would not be an exaggeration to say he is the greatest mentor among those I can call mentors.”

Chairman Kang argues that the new world humanity has never experienced before was created by Apple’s iPhone. This was made possible by the mobile digital network (MDN) world built on the foundation of smartphones.

As a result of these connections and the perspective he developed on reading the world, he also recounted buying 60,000 shares of Korea Mobile Communications, the predecessor of SK Telecom, immediately after its listing at the end of 1989 at 21,000 won per share, earning significant profits. By 1995, the stock price of Korea Mobile Communications had reached 760,000 won.

He also introduced the story of meeting his third great business partner, Kakao. Around 2014, an employee from the Shanghai branch visited the headquarters, and after having a meal and coffee together, the employee asked, “Chairman, do you use KakaoTalk?” This encounter led to a connection with KakaoTalk. After repeatedly asking himself questions such as “Will this service support my life for a long time?” “Where will this business end?” and “How much can it expand?” he concluded that Kakao was a greater company than he had imagined.

From 2015, he started buying shares at 100,000 won, and although the price dropped to 80,000 and 70,000 won, he bought more shares as the price fell, with the closing price reaching 471,000 won on March 5, 2021.

In this way, Chairman Kang also shared the secret to selecting ‘good stocks’ and ‘number one stocks.’

He wrote interestingly about how he enjoyed studying accounting at university, then selected good stocks and invested at Ssangyong Investment & Securities, becoming the ‘top performer’ fund manager in the company and even going on a training trip to Hawaii with his family.

Was there only bright light in Chairman Kang’s success story? Not at all. Like everyone’s life, Chairman Kang also experienced many hardships.

He shared painful stories such as investing with funds from the National Pension Service but having billions of won withdrawn due to demands for short-term performance, and when the stock market was poor and fund investors withdrew money, he personally wrote letters to persuade them. Reading this, one might think, ‘Friend Chairman Kang must have gotten a lot of gray hair then,’ evoking a bittersweet feeling.

However, Chairman Kang holds a strong belief that “just as a good restaurant’s chef must guard the kitchen, as a fund manager, I will create a ‘number one fund’ investing in ‘number one companies’ to build a better world together,” and he is actively working to foster a desirable Korean fund culture today.

At the end of his book, Chairman Kang proposed dressing the Demilitarized Zone (DMZ) along the armistice line with art, suggesting performances and events such as Chajeonnori (a traditional Korean game), horseback battles, drum and janggu performances, an international bicycle race for world peace, and trekking courses for peace, where people can experience the grandeur and unique culture of Koreans.

He also proposed turning Saemangeum into a ‘Copenhagen Village,’ ‘Oslo Village,’ ‘Stockholm Village,’ and other small Nordic towns, leasing them long-term to Nordic countries like Sweden, Finland, and Norway, allowing them to build their cities there, presenting a national agenda.

These ideas, typical of Chairman Kang who loves to imagine, attract attention.

Upon hearing the news of Chairman Kang’s book release, I purchased two copies through the online Kyobo Bookstore and read them thoroughly.

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