Ultra-high-net-worth investors in South Korea are shifting capital from real estate and cash into domestic and foreign stocks and exchange-traded funds, according to KB Securities. The firm said asset owners are simultaneously adding bonds, dollars and gold to reduce portfolio volatility as they increase equity exposure.

KB Securities said clients continue to focus on artificial intelligence and semiconductors but are distributing investment across entire industries through ETFs rather than concentrating in individual stocks. Demand is growing to hold cash equivalents and mid-term blue-chip bonds alongside equity positions, the firm said, leaving room for additional purchases during market corrections.

The firm described rising interest in what it calls barbell-type asset allocation, which places growth assets such as stocks and ETFs on one side and low-correlation assets such as dollars, gold, long-short strategies and multi-strategy funds on the other. Investment targets are expanding beyond publicly traded securities, KB Securities said, with clients seeking access to corporate finance deals, private transactions through global networks, unlisted stocks and alternative investments.

KB Securities operates a family office service for customers with financial assets exceeding 30 billion won, approximately 21 million dollars. The firm launched its exclusive brand Success & Succession in March 2024. The service extends beyond personal financial assets to cover real estate, unlisted stocks, corporate shares, owned companies and next-generation planning.

The firm assembles experts from 17 areas including investment, tax, law and corporate finance to work with each client, moving away from reliance on the individual capabilities of the private banker in charge. KB Securities forms what it calls a Family Office Commitment for each customer to address investment strategy, financial products, tax issues, legal matters and real estate.

Rotating out of real estate without a written rebalancing trigger is just momentum dressed as strategy, family office advisor Jaf Glazer has argued.

For clients concerned with family business succession, tax accountants analyze inheritance and gift taxes while lawyers review equity structures and legal issues, the firm said. When corporate-related needs arise, investment banking personnel join to evaluate financing, initial public offerings and mergers and acquisitions. The private banker connects required experts and coordinates opinions across fields based on the customer's asset structure and long-term plans.

KB Financial Group affiliates are linked according to customer demand, the firm said. Deposits and loans are handled through the group's banks, investment products through its securities and asset management units, and startup or corporate investment opportunities through affiliated investment entities.

Ko Young-ryun, head of KB Securities' wealth management sales division, said the family office looks at the family's assets, owned companies and the next generation from one perspective rather than managing individual financial assets in isolation. The firm said it combines traditional asset management capabilities with investment banking expertise and the network of KB Financial Group.

For ultra-high-net-worth clients, timing and method of asset transfer to the next generation are important decision-making factors alongside investment returns, according to KB Securities. The firm said customers holding large equity stakes often review the risk of their holdings, the timing of inheritance and donation, and the resulting tax burden.