"Those Who Hesitated at 3,000 Still Haven't Bought" 7 Trillion-Won Asset Manager Says "Opportunities Remain" [Investment Strategies of the Wealthy] ⑦

Interview with Jung Ahran, Head of KB Securities Daechi Financial Center
Plenty of Opportunities Remain in the Market; Invest in Companies with Proven Performance
Defend Against Volatility by Mixing Growth Stocks and Pension-Type Products
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"From last year through this year, the question I heard most often from clients as the Korean stock market continued to rise was, 'Is it still a good time to buy stocks?' Some clients kept asking but still haven't managed to invest properly. However, I want to emphasize that there are still opportunities left in our stock market."

Jung Aran, Head of KB Securities Daechi Financial Wealth Management Center, said in an interview with The Asia Business Daily on May 7 that clients have been continuously asking about the right timing to enter the stock market as the KOSPI surged. Jung leads the second largest Wealth Management (WM) center at KB Securities. The center manages over 7 trillion won in client assets.

Jung explained, "Since the KOSPI was hovering around the 3,000-point level, many clients asked whether it was too late to invest because they felt stock prices had risen too much. Even now, as the KOSPI is aiming for 8,000 just a year later, the same questions persist." She expressed regret, saying, "Many clients have missed out on the chance to make money because they hesitated to invest."

She acknowledged that "as stock prices have risen, volatility may increase going forward," but emphasized, "There are still many good companies in our stock market where one can make profits." She advised, "In order to consistently generate returns while minimizing volatility, it's important to build a diversified asset portfolio."

She added, "Rather than a simple aggressive strategy of only holding stocks, it's better to maintain growth stocks while also including stable assets such as dividend income funds and pension-type products like Individual Savings Accounts (ISA) or Individual Retirement Pensions (IRP) for a balanced portfolio."

Among stocks, she recommended buying shares in sectors related to artificial intelligence (AI). Jung said, "Semiconductors, power infrastructure, and robotics related to the AI supercycle remain core investment targets." She added, "Defense, aerospace, K-content, and entertainment are also attractive, and interest continues in sectors being revalued, such as finance, holding companies, and securities, which are benefiting from the recent trend of corporate value reassessment."

Although the Korean stock market has risen significantly, she forecast that there is still ample room for further gains. Jung analyzed, "I remain positive about the trends in global liquidity and AI-driven industrial growth. In particular, the performance of U.S. big tech firms and expanded AI investments are boosting market liquidity." However, she also noted, "It is a market where selection and focus are important, and that trend will continue. Ultimately, companies with proven performance and a well-balanced asset allocation strategy will determine results."

As advice for individual investors, she said that while direct investment is fine, using indirect investment products is also a good option for long-term and steady returns. Jung explained, "Clients who directly trade stocks often feel the urge to sell as soon as their stocks go up a little, leading to frequent switching and trading, which often makes it difficult to achieve high returns. Because frequent trading halves returns, I have witnessed many unfortunate cases where clients underperform the market even in a strong bull market."

She further emphasized, "Although Samsung Electronics and SK hynix have doubled over the past year, there are few clients who bought these companies at low prices and waited until the end to realize more than 100% profit."

However, she said that indirect products, such as funds, often outperform direct investment in terms of returns because switching is not easy. "Even though only half the year has passed, there are already many public offering funds we recommended that have returned more than 100%," she explained. "Once you subscribe to a fund, trading becomes difficult, which naturally leads to long-term investment and enhances returns in a strong market." She added, "Indirect investments include aggressive products such as equity funds and stable products like pensions, so it is important to build a well-structured portfolio and implement a sound asset allocation strategy to enable long-term investing."

Jung pledged, "I feel most rewarded when my clients' assets grow alongside my own and when I can discuss important financial decisions with them. I will continue to provide balanced asset allocation and long-term investment solutions to help clients grow their wealth stably over time."