The Place Even Lee Young-ae Fell for... Visiting Apgujeong KB Asset Management Center Targeting High-Net-Worth Individuals

[Flagship PB Center Chronicles①] KB Gold & Wise The First

Editor's NoteThe competition among banks to establish flagship Private Banking (PB) centers for high-net-worth individuals has intensified. Hana Bank, a traditional leader in PB, has consecutively opened Club1 1st and 2nd centers in Samseong-dong, Gangnam-gu, and Hannam-dong, Yongsan-gu. Meanwhile, KB Kookmin Bank unveiled its flagship 'KB Gold & Wise the FIRST' in Apgujeong-dong, Gangnam-gu, one of Seoul's most affluent neighborhoods. Shinhan Bank, which launched the 'Shinhan PWM Family Office (SFC)' earlier this year to provide asset management services to clients with financial assets exceeding 10 billion KRW, is preparing to establish a new-concept PB center in Apgujeong, targeting an opening next year or the year after. Woori Bank is also expanding its 'Two Chairs Exclusive (TCE)' center for clients with average balances over 1 billion KRW. The acceleration in building flagship PB centers is driven by the prolonged low-interest-rate environment and rising asset prices over recent years, which have increased not only traditional wealthy individuals but also young rich who have accumulated wealth through virtual assets. According to the '2021 Korea Wealth Report' published last year by KB Financial Group Management Research Institute, the number of 'wealthy' individuals with financial assets exceeding 1 billion KRW reached approximately 393,000 in 2020, a 45% increase compared to five years prior. Notably, among the total financial assets of 2,618 trillion KRW held by the wealthy, ultra-high-net-worth individuals with assets over 30 billion KRW (7,800 people, 2.0%) hold 1,204 trillion KRW, and high-net-worth individuals with assets between 10 billion and 30 billion KRW (about 28,000 people, 7.2%) hold 489 trillion KRW. This explains why banks are fervently building flagship PB centers.

"The Most Beautiful Building in Our Neighborhood" KB Financial Group's ambitious comprehensive asset management center for high-net-worth clients has opened in Apgujeong. Since its opening last month, it has become a new landmark in Apgujeong, with passersby stopping to take photos and post them on Instagram. There are even young rich clients who, having come casually in shorts, fell in love with the place and became customers.

Last month, in the afternoon, the 'KB Gold & Wise the FIRST' located in Sinsa-dong, Gangnam-gu, impressed visitors with its grand scale right from the entrance. It featured high ceilings and a massive art wall, with art pieces worth tens of billions of KRW on display. To cater to the sophisticated tastes of visiting asset owners, a book curator was even hired to carefully select and arrange books.

The center is a combined bank and securities branch spanning from basement level 2 to the 7th floor. The entire 2nd floor operates as a library caf? where visitors can read or relax. It displays cultural, artistic, and humanities books that are hard to find elsewhere, and the interior is decorated with plants and fragrances to evoke the feeling of being in a forest. Actress Lee Young-ae, who is the advertising model, also visited and reportedly showed interest and appreciation for the exhibited books. Specially made diffusers and perfumes exclusive to this location add to the luxurious scent.

Ultra-Luxurious Consultation Rooms Reminiscent of Hotel Suites

Except for the 6th floor where the PB offices are located, customer consultation rooms are available from the 3rd to the 7th floor. The 7th floor is an exclusive space accessible only to the super-rich. Upon exiting the elevator, visitors are greeted by a deer statue titled 'Deer' by artist Kim Woo-jin, reminiscent of a European gallery. There are two consultation rooms on the 7th floor. Inside, chandeliers, powder rooms, private restrooms, and balconies create an atmosphere akin to a suite in a famous hotel. Clients can enjoy a painting by the late artist Kim Whanki, valued at 3 billion KRW, during their consultations.

Choi Jae-young, Head of KB Financial Group's WM and Pension Division, said, "It took more than three years to build this place," adding, "'The FIRST' signifies providing the highest value befitting the top-tier clients." The center features consultation rooms designed according to clients' preferences and over 1,400 state-of-the-art safety deposit boxes equipped with robotic technology. Private bankers (PBs) reserve consultation rooms tailored to clients' tastes. Choi emphasized, "Clients' privacy is paramount, so we carefully designed the flow to ensure clients do not cross paths."

"Explosive Growth of Family Offices... Targeting the Market"

They plan to pioneer the market by preparing a KB-style family office. Choi, along with Park Jin-sun, head of KB Kookmin Bank's center, and Lee Jae-ok, head of KB Securities' center, are collaborating on this. Family offices (private asset management firms established by wealthy individuals) are already common in the US, Europe, Hong Kong, and Singapore, but in Korea, financial institutions currently operate in forms similar to family office services. KB anticipates explosive growth in this market domestically in the future.

Choi explained, "Typically, family offices focus on asset growth and business succession, but KB offers comprehensive services including finance, asset growth, real estate, taxation, and trusts." He added, "We have a team of 35 top experts. Because we manage clients as teams, comprehensive wealth management is possible. Real estate, tax, legal, and trust experts are stationed on-site." Park said, "We do not limit ourselves to bank-specific products but have various trust products available. When clients have needs, we collaborate within legal frameworks, such as securities passing tasks to Toss."

KB also plans to target the 'philanthropy (high-value donations)' market, a recent overseas trend. The center head said, "Philanthropy has become important overseas, from Bill Gates to Steven Spielberg," adding, "We are drawing a blueprint to become the number one philanthropy center even compared to global standards."

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