Wealth managers in South Korea can sense an opportunity. As the number of high-net-worth individuals (HNWIs) in the country continues to rise – reaching almost 193,000 according to Capgemini (see chart) – they are having to contend with historically low interest rates, the economic slowdown in China and worries over the state of the global economy. This combination of a rising client base and a volatile investment climate should prove to be an ideal environment for the continued evolution of the wealth management industry in the country.
The South Korean wealth management scene is dominated by domestic firms. Last year saw the merger of Hana Bank with Korea Exchange Bank to form KEB Hana. Prior to the merger, Hana already possessed the most HNWI clients of any South Korean bank, a position it has now consolidated. Other major players include Shinhan Bank, Woori Bank and Kookmin Bank, with other financial firms such as Mirae Asset and Samsung also offering services to wealthy individuals.
