"Should I Sell My Gangnam Building to Invest in the Korean Market?... '30 Billion KRW Investors' Favor Semiconductor, AI, and Robotics ETFs [Wealthy Investors' Strategies] ④"

Interview with Miryung Cho, Branch Manager of SNI at Samsung Securities Apgujeong Financial Center
High-Net-Worth Clients Rebalance Assets into Korean Stocks
Growing Interest in Blue-Chip CBs and BWs on KOSDAQ
Focus on Stability through Cur

"Even high-net-worth individuals are showing a lot of interest in the stock market. Given the high volatility, while some still invest in individual stocks, many are responding to market conditions by investing in sector Exchange Traded Funds (ETFs)."

In a recent interview with The Asia Business Daily, Miryung Cho, Branch Manager of the SNI branch at Samsung Securities Apgujeong Financial Center, stated that even wealthy clients with investment assets of over 3 billion won are increasing their investments in the domestic stock market.

Miryung Cho, Branch Manager of the SNI branch at Samsung Securities Apgujeong Financial Center, is being interviewed by The Asia Business Daily on the 16th of last month at the Samsung Electronics Building in Seocho-gu, Seoul. Samsung Securities

Samsung Securities launched its dedicated high-net-worth client brand, SNI (Success & Investment), in 2010, leading the industry, and introduced the "Family Office" service for ultra-high-net-worth individuals in 2024. The number of individual clients at the SNI Center, which is available to those with more than 3 billion won in deposited assets, recently surpassed 7,700. The Family Office Center manages assets for a total of 170 families, with approximately 56 trillion won in assets under management.

Branch Manager Cho is a certified public accountant who joined Samsung Securities in 2021 and is recognized as a "high-net-worth asset management expert" with experience in both the Family Office Center and SNI Center. She said, "This is perhaps the first time I've seen the domestic stock market perform this well, so (clients') interest in Korean equities has definitely increased," adding, "When managing portfolios and allocating liquidity, bonds, alternative assets, and stocks, there has been a strong trend since last year to rebalance funds from other asset classes into domestic equities."

She described the investment approach of the wealthy in the domestic stock market as being defined by "safety" and "diversification." Cho explained, "The proportion of stock-related assets has increased overall, but the share of sector ETFs in particular has grown significantly. Clients are more interested in capturing entire sectors—such as semiconductors, artificial intelligence (AI), and robotics—rather than focusing on single stocks. As a result, portfolios are diversified across multiple sectors in order to respond to market conditions."

When it comes to the KOSDAQ market, which has higher volatility than the KOSPI index but has recently benefited from policy support, she said the approach is "mezzanine investment." Mezzanine, meaning the "intermediate floor" between the first and second floors, refers to investment products that combine the features of bonds (stability) and stocks (profitability). Convertible bonds (CBs) and bonds with warrants (BWs) are typical instruments in this category. Cho noted, "Most companies able to raise capital through mezzanine instruments are fundamentally sound but have growth potential, allowing them to secure funds at a lower cost. Because this aligns with government policy initiatives and creates ample growth opportunities, there is significant interest not only from investors with previous mezzanine experience but also from new clients."

Since Samsung Securities has the largest number of high-net-worth clients, it places particular emphasis on "stability." Cho stated, "Our clients' assets usually come from selling businesses or real estate, so these are assets they cannot afford to lose. To always be prepared for market volatility, we manage portfolios by diversifying currencies—such as the dollar, euro, and yen—and by allocating across different portfolio segments, rather than focusing on single products or stock trading. Portfolio weights are adjusted according to market conditions." She added, "We also invest in hedging assets so that even if one area underperforms due to market downturns, another area can compensate, enabling us to manage assets in a conservative and resilient way."

Jomiryeong Cho, Branch Manager of SNI at Samsung Securities Apgujeong Financial Center, is being interviewed by The Asia Business Daily on the 16th of last month at the Samsung Electronics Building in Seocho-gu, Seoul. Samsung Securities

During the first quarter, when the stock market was highly volatile due to the war between the United States and Iran, the branch utilized "Change Lab" products. Change Lab is a product that is liquidated for cash once a specific return is reached, thereby securing profits. Cho explained, "At our branch, we responded by targeting short-term returns through Change Lab products, and despite the significant volatility following the outbreak of war, clients were able to continue accumulating profits, resulting in continued inflows of funds."

Given the characteristics of clients who are older or have substantial real estate assets, there has been a surge in questions about selling real estate. Cho said, "With the high interest costs involved in maintaining real estate and uncertainty over whether future price increases can offset those costs, many clients are inquiring about selling their properties and reallocating those funds to the stock market, where there are growth opportunities. We are seeing many actual sale requests as well."

Inheritance, gifting, and the associated taxes are also major concerns for these clients. Cho said, "There is strong interest in our inheritance trust and safe gifting trust products, and we are holding frequent meetings with the Samsung Securities 'Heritage Center.' The Heritage Center has experts in real estate and tax, and from an accountant's perspective, their tax services are on par with any accounting firm in Korea."

Finally, Cho pointed out the following as promising investment themes going forward: ▲semiconductors ▲domestic bonds (long-term) ▲alternative investment assets. She said, "Even high-net-worth clients are constantly discussing 'When will memory semiconductors hit their peak?' so I recommend including the semiconductor sector in your portfolio." She continued, "With interest rates having risen sharply due to the war, it is a good time for conservative funds to have some allocation in long-term domestic bonds. In addition, it is essential not to overlook alternative investment products managed by major global asset management companies."

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