High-Net-Worth Investors Increase Stock Holdings: "Samsung and SK hynix Are Basic, Now Searching for the Next Opportunity" [Investment Strategies of the Wealthy] ⑧

Interview with Won Jangyun, Director of Shin Young Securities Family Office

Beyond Semiconductors: Focus on Nuclear Power, Alternative Energy, and Policy Beneficiaries

"Risk Management Through Asset Allocation Is Essential"

Won Jang-yeon, Director of Family Office at Shinyoung Securities.

This year, as the domestic stock market has seen a sharp upward trend, significant changes are being detected in the investment landscape of high-net-worth individuals. While these individuals are increasing their holdings in artificial intelligence (AI) semiconductor-related stocks such as Samsung Electronics and SK hynix, they are also showing interest in sectors that may lead the 'post-semiconductor cycle.'

Won Jangyeon, Director of Shinyoung Securities Family Office, said in a recent interview with The Asia Business Daily, "If the previous portfolio distribution among high-net-worth individuals was 30% stocks, 30% bonds, and 40% alternative assets, recently the stock allocation has often expanded to as much as 60%." He explained, "Given the current environment of abundant liquidity and ongoing expectations for earnings improvement, the prevailing tendency is to maintain the current structure rather than aggressively reduce stock holdings." Won added, "High-net-worth individuals are not necessarily conservative; in fact, many display a proactive and forward-looking investment orientation."

According to Won, the most frequently asked question from clients recently has been, "How long will the market rally continue?" He commented, "While it is difficult to provide a definitive answer, based on the indicators revealed so far, there is still additional room for growth." He cited the simultaneous influence of abundant liquidity, improving corporate earnings, and supportive government policies as the reasons.

The preferred investment destinations for high-net-worth individuals can largely be divided into two categories. The first is, as expected, AI and semiconductor infrastructure. As these are considered the core drivers of global IT growth, interest in related investments remains high. Domestically, this interest is expanding from Samsung Electronics and SK hynix to equipment companies expected to benefit from rising semiconductor prices and increased capital expenditures.

He said, "Even amid variables such as exchange rates, oil prices, and interest rates, it is important to focus on assets with solid fundamentals," adding, "The earnings growth rate of semiconductor companies was difficult to forecast until last year, but the outlook for continued growth through the second half of this year is strong."

The second focus is on stocks benefiting from 'value-up' initiatives. With government policies aimed at enhancing corporate value and discussions about amendments to the Commercial Act, expectations are rising for the revaluation of undervalued companies. In particular, since high-net-worth individuals are very sensitive to post-tax returns, they are increasingly allocating investments to companies expected to offer expanded dividends and separate taxation benefits.

Investment opportunities after the semiconductor supercycle are another area of interest for high-net-worth individuals. Won pointed to the energy sector as a major investment destination. Recent tensions in the Middle East have highlighted the importance of energy security, increasing the likelihood of policy changes. He stated, "There is inevitably growing interest in alternative energy and nuclear power," adding, "It is also worth noting the trend of domestic companies participating in the global nuclear power market as 'Team Korea.'"

Furthermore, perspectives on virtual assets are also changing. Won explained, "There is clearly a trend toward including virtual assets, including Bitcoin, as an asset class," and "There are many cases where a portion of the overall assets is allocated in this way." However, he also noted, "Debate continues regarding the intrinsic value and function of virtual assets," urging a cautious approach.

He also pointed out that signs of market overheating should not be ignored. He stated, "In the first quarter of this year, funds flowing into the stock market totaled about 60 trillion won, more than a sevenfold increase from the previous quarter." He cautioned against excessive concentration in specific assets. He added, "Since the Korean market is sensitive to geopolitical risks and changes in interest rates and exchange rates, risk management through asset allocation is essential."

Meanwhile, Shinyoung Securities Family Office is an organization that goes beyond simple asset management to help high-net-worth individuals securely transfer their wealth to the next generation. Experts in accounting, taxation, law, real estate, and trusts work together to provide customized succession, tax-saving, and investment solutions tailored to the needs of each family and business. In particular, by offering family-specific, specialized multi-asset funds matched to client preferences, the Family Office proposes stable portfolios that reflect asset allocation strategies and risk assessments by investment professionals, going beyond simple product recommendations for high-net-worth individuals.

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