Ultra-wealthy investors reshape the rules of wealth management

Ultra-high-net-worth individuals are no longer a niche segment but a central pillar of the wealth management market.

Shim Dong-kyu

The author is an executive managing director of PB Strategy Division at Korea Investment & Securities.

The landscape of wealth in Korea is being reshaped at a rapid pace.

According to KB Financial Group’s “Korea Wealth Report,” the number of households with financial assets exceeding 1 billion won ($750,000) has grown by around 10 percent annually since 2011. Strong equity markets, rising real estate prices and the global expansion of Korean companies have also increased the presence of ultra-high-net-worth individuals (UHNWIs) with assets of 10 billion won or even 30 billion won and more.

Galleria Foret and Acro Seoul Forest (right) in Seongsu-dong, Seongdong District, Seoul. These high-end residential complexes have helped transform Seongsu into one of the capital’s most prestigious and affluent neighborhoods. [SEOUL METROPOLITAN GOVERNMENT]

As wealth grows, the nature of concerns changes. These investors are no longer focused simply on managing large portfolios. They face the task of strategically designing and restructuring increasingly complex asset structures. Advances in technology, including AI, are improving access to information and analytical capabilities and accelerating changes in the traditional formula of wealth management.

For UHNWIs, decision-making is no longer driven by returns alone. Investment targets are becoming more layered and structured, expanding beyond listed stocks and bonds to include private and alternative assets. At the same time, Korea’s relatively high inheritance and gift taxes have made legally efficient tax planning and long-term succession strategies central priorities. The unit of wealth management is shifting from the individual to the family, with a focus on intergenerational planning.

In advanced financial markets, wealth is increasingly managed as an integrated system through dedicated structures known as family offices. These organizations oversee investment strategy alongside tax, legal, succession and governance matters, managing family wealth comprehensively. Their emphasis on long-term structural planning rather than short-term performance aligns closely with the needs of ultra wealthy clients.

In Korea, financial institutions have established or expanded family office units in recent years. Questions remain about their effectiveness. Some argue that the cost-benefit balance may be unfavorable unless assets reach a certain scale. Others point out that organizations affiliated with financial companies may face potential conflicts of interest.

Despite such concerns, the direction is clear. UHNWIs are no longer a niche segment but a central pillar of the wealth management market. Their priorities are shifting beyond short-term returns toward risk management, intergenerational transfer and stable family decision-making structures. In response, the industry is reorganizing its structures and services.

The value of a family office cannot be judged by short-term performance alone. Success depends on the judgment to accelerate or slow decisions when necessary and on trust built over long periods. As the focus of wealth management shifts from how much to earn to how to preserve and transfer assets, the expansion of the ultra-wealthy segment signals not just growing fortunes but a structural transformation of the financial industry. Ultimately, even the most sophisticated strategy cannot endure without trust that lasts across generations.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.