Even Wealthy Investors in Cheongdam and Apgujeong Are Turning to Stocks After Selling Homes: "When Should I Buy Samsung and SK hynix?" [Investment Strategies of the Wealthy] ②

Interview With Jihye Kim, Head of Apgujeong Wealth Management Center at Mirae Asset Securities
Traditional Wealthy Clients Weighing Timing for Samsung Electronics and SK hynix
Balancing Domestic and Overseas Investment Proportions

"These days, affluent individuals in Apgujeong-dong and Cheongdam-dong are highly concerned about how to transfer their real estate assets into financial assets."

Jihye Kim, Managing Director and Head of the Apgujeong Wealth Management Center at Mirae Asset Securities Investment Center, said in a recent interview with The Asia Business Daily, "Due to the government's real estate policies such as heavy taxation on owners of multiple homes and loan restrictions, there is an active 'money move'—the transfer of funds from real estate to financial assets—taking place among clients in the area."

Jihye Kim, Managing Director and Head of the Apgujeong Wealth Management Center at Mirae Asset Securities Investment Center, is being interviewed by The Asia Business Daily at the Apgujeong Center in Gangnam-gu, Seoul. Photo by Hyunmin Kim

Even Apgujeong's Wealthy Are Moving Their Money Into Stocks

Given that Apgujeong-dong and Cheongdam-dong are traditionally affluent areas, there are many clients who own multiple properties. Kim explained that, as a result of government real estate measures, many clients have sold their homes, and the proceeds from these sales are now being transferred into the capital markets.

Kim emphasized, "As the reconstruction of apartments in Apgujeong becomes more active, it is increasingly likely that real estate assets will be converted into cash or other investment assets. We are attracting these funds by offering Mirae Asset’s unique, comprehensive solutions that cover not only investment consulting but also business succession, inheritance, gifting, and tax-saving strategies."

The asset allocation strategy presented by Kim is clear: to build portfolios around two pillars—global growth companies and stocks benefiting from government policies. Recently, domestic and overseas assets have been maintained at a roughly 40:60 or 50:50 ratio. While last year’s growth was driven by major U.S. big tech companies, this year the portfolio has increased its proportion of top domestic stocks, such as Samsung Electronics and SK hynix, in anticipation of improved semiconductor earnings. Internationally, investments are being diversified across the U.S., China, India, and other emerging markets to achieve results.

Kim stated, "High-net-worth individuals are investing heavily in leading stocks that are driving earnings growth in the domestic market, namely semiconductors, electrical equipment, and shipbuilding. In the U.S., investments are concentrated in companies with strong growth potential, such as those in the artificial intelligence (AI) power infrastructure sector." She added, "We are also including many companies in our portfolios that are expected to benefit from government policies, such as the separate taxation of dividends and mandatory share buybacks and cancellations."

High-net-worth clients are especially interested in semiconductors—such as Samsung Electronics and SK hynix—that have recently been leading the Korean stock market. According to Kim, the question clients ask most frequently these days is, "When should I buy and sell Samsung Electronics and SK hynix?" Among other stocks, Kim also has a positive outlook on Samsung Electro-Mechanics and companies related to power infrastructure. She commented, "With rising AI demand, performance in sectors like substrates, including Samsung Electro-Mechanics, is expected to improve. AI power infrastructure sectors with proven profitability are also promising."

Assessing Risks and Allocating Assets Appropriately  

Kim also expressed a progressive view on virtual assets, stating, "Virtual assets are evolving from speculative assets into alternative assets within institutional frameworks. Mirae Asset plans to provide integrated management that breaks down the barriers between traditional financial assets and digital assets."

Since joining Mirae Asset Securities in 2001, Kim has spent over 20 years working in the field. Her investment philosophy centers on "Client First." She prioritizes the stable management of retirement assets from the client’s perspective. Drawing on her experience weathering many downturns, including the global financial crisis and COVID-19, she again emphasized the importance of asset allocation.

"Concentrating on a single stock is not sustainable. The only way to minimize client complaints during downturns and maximize profits during upturns is to assess market risks and allocate assets appropriately."

Kim concluded, "I feel most fulfilled when the company’s growth and our clients’ returns go hand in hand. We will further strengthen our tailored, hands-on services, such as pension consulting for retired executives, considering the unique characteristics of the Apgujeong region."

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