Surprised where the super rich in Korea keep their money
ChandraGarran04 18-01-2023, 16:55
Surprised where the super rich in Korea keep their money

An exclusive banking branch of KB Financial Group is attracting super-wealthy Korean parents who want to pass their wealth on to their children smoothly.

At Apgujeong in Gangnam-gu, Seoul, home to many super-rich Korean families, an elegant 7-story building attracts all the eyes of passersby.

The building was built by KB Financial Group to provide personalized financial services to the wealthiest people in Korea. This is a place beyond what ordinary commercial banks can do.

Instead of having to pick up a queue ticket, customers will be served a cup of coffee brewed in court. The surrounding space is decorated with works worth billions of won, chandeliers and books that you can’t find at normal bookstores.

KB Gold&Wise The First, Apgujeong-dong branch, is the flagship and premium version of KB’s private banking brand KB Gold&Wise.

Pursuing wealth management services for ultra-high net worth individuals, this branch offers its clients an experience like visiting a private gallery or gallery.

On the second floor of the building is an area displaying precious books and cultural collections. Customers will also be able to breathe in a pleasant atmosphere with the custom essential oil diffuser.

From the 3rd to 7th floors are 15 consulting rooms for customers. In it, discussions can take place privately. Two consulting rooms on the 7th floor are like suites of a luxury hotel. In the room hung a painting worth 3 billion won by abstract artist Kim Whan-ki.

Besides the luxurious interior, a professional tax accountant, attorney, real estate specialist and banker will come together as a team to provide a highly personalized service to the client.

“We have about 40 top professionals here,” said Hwang Sun-a, head of the senior branch.

Super rich parents often come to this building. They are people who want to pass the business on and distribute their assets to their children and grandchildren smoothly.

“Our main customers are top executives of large companies and their family members,” says Hwang. Many family businesses here are in the process of transferring power to the next generation. That requires super-rich families to think about comprehensive wealth management advice, not just a single financial product.”

Young start-ups are another group of customers, Hwang added.

Although the popularity of online banking has led commercial banks to downsize their in-person services and close branches, local banks see the growth potential of hyperpersonal services to manage the wealth of the super-rich, similar to the services offered by foreign banking groups such as UBS and Credit Suisse.

“The promotion of wealth management business for ultra-high net worth individuals and the development of digital platforms are becoming the two main pillars of local banks,” said Hwang. ”

According to the Korea Wealth Report 2022 recently released by KB Financial Group, the number of “rich people” in Korea at the end of 2021 is 424,000, an increase of 19.7% from the previous two years.

KB Group defines the wealthy as those with financial assets of more than 1 billion won. The group has total financial assets of 2.883 trillion won, accounting for 58.5% of total financial assets of Korean households.

The center provides clients with the financial services offered by banks and securities companies, from private equity investments, IPOs to securities investment trusts…

According to The Korea Herald