[PB Travelogue] "These days, the Young Rich are a Studious Generation... Start by Setting Real Estate as a Goal"

"Having an 'open mind' toward various investment options"

The young wealthy individuals visiting Gangnam Finance Center in Gangnam-gu, Seoul, are mostly second-generation heirs of old money families. Seongjin Jeong, Deputy Head of KB Kookmin Bank Gangnam Star PB Center, described these young wealthy clients as a "(investment) learning generation," unlike in the past. He said, "They quickly grasp trends on their own, accumulate a lot of information through their inner circles, and thus have fast information power." He also added that they do not deal with just one bank but compare 2 to 3 financial institutions, conduct multiple transactions, and verify information.

Deputy Head Jeong said, "Even banks often do not know much about government bonds, but (these days' clients) have accumulated considerable information and are quite quick to grasp real estate policies." However, unlike the self-made young wealthy from the startup sector, these individuals tend to be somewhat conservative. Especially second-generation young wealthy focus on 'preserving' existing assets, so they invest up to fixed deposits or company bonds with safe ratings.

Jung Sung-jin, Deputy Head of KB Kookmin Bank Gangnam Star PB Center

The young wealthy also tend to generate profits mainly through real estate. They prefer 'buildings' over houses for investment purposes. They usually own one residential property for living and invest in commercial buildings. Deputy Head Jeong explained, "In the case of land investment, since you need to know development prospects in advance to invest, they do not often take on such challenges."

When asked how to aspire to become a 'young wealthy,' he advised setting concrete goals such as 'buying an apartment of a certain size in a specific neighborhood' rather than jumping into vague financial ventures, and reducing conspicuous consumption. Deputy Head Jeong said, "I have met many wealthy people, but I have rarely seen those who engage in conspicuous consumption." First, it is necessary to focus as much as possible on earned income to create seed money and then work on growing it.

Deputy Head Jeong especially emphasized real estate. He said, "Real estate tends to have relatively less information disparity, and ultimately, what wealthy people ask most about is whether they should move their 'home' or not." Given the outlook that the interest rate hike is nearing its final stage, he advised prioritizing real estate. He added, "Rather than studying unfamiliar financial ventures, it is necessary to manage consumption and set a goal of owning one real estate property."