Wealthy Investors' Strategies

Among wealthy individuals in Gangnam, the hottest asset these days is undoubtedly domestic stocks. This comes as no surprise, given that the KOSPI, which had stagnated around the 2,500 level until early last year, has surged more than threefold in just one year. Private bankers (PBs) at securities firms, who help grow the assets of affluent clients, say that even ultra-wealthy individuals with assets in the tens of billions of won—who have traditionally invested conservatively—are now most frequently asking whether they should buy more domestic stocks such as Samsung Electronics and SK hynix, how long they should hold them, and whether the market is overheating.High Net Worth Individuals Continue to Buy Domestic StocksSeong Hyunhee, Head of the Premier Blue Gangnam 2 Center at NH Investment & Securities, said in a recent interview with The Asia Business Daily, "Because the local stock market is so hot, even conservative high net worth individuals are increasing their allocation to dome

"In a bull market, you need an investment strategy tailored to the bullish conditions. The key is the 'barbell strategy,' which involves holding both stocks and bonds." Kim Woosik, Head of the Sales Division (Managing Director) at Korea Investment & Securities, emphasized the importance of the barbell strategy—which combines tax-efficient bonds and long-term U.S. Treasuries as a safety net—during a recent interview at the firm's headquarters WM Center in Yeouido. He noted, "Among ultra-high-net-worth individuals with financial assets exceeding 3 billion won, we are seeing an aggressive trend of increasing equity allocations to over 80%." Nevertheless, Kim stressed the necessity of supplementing these portfolios with safe assets like bonds as part of the barbell approach. Recently, wealthy clients have been reducing their cash holdings to less than 50% of their portfolios, and in some cases, even liquidating portions of their real estate assets to increase equity investments. Kim noted

"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. 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 approxima

"Recently, wealthy individuals have been increasing their allocation to stocks. Previously, the ratio between stocks and safe assets such as deposits and bonds was 4 to 6, but now it has reversed to 6 to 4." Jongho Kang, Head of the Shinhan Investment Corp. PIB Gangnam Center, stated in a recent interview with The Asia Business Daily that high-net-worth individuals are expanding their investments in stocks. He explained, "Recently, the share prices of semiconductor stocks such as Samsung Electronics and SK hynix have surged, which has led to a sense of FOMO (fear of missing out) among wealthy investors. This trend has become particularly noticeable since the end of last year." The Shinhan PIB Gangnam Center provides comprehensive asset management services for high-net-worth individuals by combining the strengths of private banking (PB) and investment banking (IB), offering one-stop solutions for investment products, real estate, tax, and more. The assets managed at this center exceed 1

"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." Even Apgujeong's Wealthy Are Moving Their Money Into StocksGiven 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

With the KOSPI approaching the 7,000 mark and the KOSDAQ surpassing 1,200 for the first time in 25 years, historic bullish momentum in the stock market is leading to changes in investment strategies among high-net-worth individuals (HNWIs). Contrary to expectations that the wealthy would be conservative, HNWIs are proactively increasing their equity allocations in response to the strong stock market. In particular, it has been revealed that HNWIs favor semiconductors, especially Samsung Electronics and SK hynix. Whereas real estate used to make up a significant portion of their assets, HNWIs are now selling real estate and reallocating those funds into financial assets, devising new investment strategies. According to interviews conducted by The Asia Business Daily with heads of Wealth Management (WM) centers at major securities firms, most HNWIs are increasing their proportion of domestic stocks. In the past, a larger portion of their portfolios was allocated to safe assets such as de