[Market Insight] 'Super Rich Expert' Lee Jae-ok, KB Securities Executive Director: "The Core of Asset Management Is the Customer"

Interview with Lee Jae-ok, Executive Director of Retail Business Division at KB Securities
Asset Management Expert with 30 Years of Experience Serving Super Rich Clients
Customer First, Customer Second... "Customers Are the Top Priority"

"To provide the most effective Wealth Management (WM) service, we focus on the customer. We present an optimized portfolio as the only solution that exists for a single individual."

On the 20th, at the KB Securities headquarters in Yeouido, Seoul, Lee Jae-ok, Executive Director of KB Securities, emphasized that the core of asset management is prioritizing the customer. Director Lee is an asset management expert with 30 years of experience working with ultra-high-net-worth individuals both domestically and internationally.

He said, "The most accurate solution starts with understanding the customer," adding, "We always think about providing services that customers want to seek first. The beginning and end of asset management is ultimately the customer."

Judging that customized comprehensive asset management is possible at securities firms

Lee Jae-ok, Executive Director and Head of Retail Business Division at KB Securities, is being interviewed on the 20th at the KB Securities headquarters in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

Director Lee began his career as a Private Banker (PB) in the banking sector, then worked at UBS Hong Kong and now leads the Retail Business Headquarters at KB Securities. He recalled, "While working in Korea, I suddenly felt the need to build my capabilities overseas. So, I joined a foreign financial company and worked there for about 13 years. When I returned to Korea, the financial market had developed to an astonishing level. I wanted to apply the asset management know-how I had learned abroad."

Upon returning to Korea, what impressed him most was the elevated status of securities firms compared to the past. He explained, "Until the early 2000s, asset management for high-net-worth individuals was led by banks. But now, securities firms play a central role. This is because securities firms can offer customers a broader and more diverse range of opportunities from the perspective of asset allocation and investment." He added, "Customers already know how many diverse investment options exist. Their knowledge is also quite advanced. The optimal service to meet customers' needs is possible at securities firms."

'Second-generation' and 'Samo-nim' customer strategies achieved results

Lee Jae-ok, Executive Director and Head of Retail Business Division at KB Securities, is being interviewed on the 20th at the KB Securities headquarters in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

As an asset management expert, Director Lee cited his special achievements with strategies targeting 'second-generation' and 'Samo-nim' customers. He was among the first in the industry to attempt marketing targeting the second generation of wealthy families, which is now common. He said, "The second-generation clients of the wealthy families we served had several commonalities, such as attending universities in the U.S. Recognizing this, and since they were of similar ages, I facilitated exchanges among these second-generation clients who could rely on each other like siblings." He added, "Those second-generation clients I met have now become leaders of major companies driving our economy. They still maintain deep, family-like relationships."

Regarding the 'Samo-nim' customer strategy, Director Lee said, "While working overseas, I built relationships with the wives of Korean ultra-high-net-worth individuals managing companies locally and provided asset management services. The role of the wives is very significant, not just the executives themselves. I devoted all my efforts to broadening their investment perspectives." He continued, "This work was highly recognized by the company I worked for at the time, and the company began focusing on managing female clients across the organization. They immediately implemented a 'women's market' strategy, anticipating that globally, as female investors and female CEOs increase, women would emerge as major players in asset management."

Rapidly growing super-rich asset management scale... "Now asset liquidity"

This month, KB Securities' asset management scale surpassed 60 trillion KRW. After breaking 50 trillion KRW last August, it increased by 10 trillion KRW in just over 10 months, showing rapid growth. Director Lee said, "The recent rapid increase in asset management scale is based on KB Securities' principle of putting customers first. All efforts, including workforce allocation and system improvements for asset management, are made with the customer as the top priority." He added, "Customers can receive integrated asset management from competitive affiliates within the KB Group, including securities, banking, asset management, and insurance, just by coming to KB Securities." He explained, "Comprehensive asset management cannot exclude any part of the financial industry. This is because the capabilities of KB Group companies are organically connected to KB Securities' asset management services."

Director Lee also emphasized that the CPC (Customer Management - Customized Solutions - Channel Linkage) strategy based on customer demand played a significant role in the recent growth of asset management scale. He said, "KB Securities has been refining the CPC strategy for a long time. This is an essential capability to provide optimized solutions for each stage of the customer's life cycle in a hyper-personalized society." He added, "We establish customer-tailored portfolios through a diverse product lineup based on KB Securities' carefully selected research." He explained, "The channels for communicating with customers include branches and the digital channel 'Everywhere PB Service.' This allows us to respond to customers nationwide in real time, making risk management easier."

Furthermore, he identified 'asset liquidity' as the biggest concern for super-rich clients managing their assets recently. He said, "Most of the wealth of ultra-high-net-worth individuals has been accumulated in real estate, but now customers see effectively converting real estate into cash as an urgent task." He added, "Tax-saving methods required during the process of reducing real estate holdings are also a key issue." He continued, "We also see a shift from domestic-biased investments to expanding interest in global investments. Recently, bond investments have been effective due to high interest rates and remain so, but money is moving toward domestic stocks with expectations of corporate value-up programs and overseas stocks for global asset allocation."

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