IBK WM Expert's Investment Advice in the Biden Era: "Hold BIG and Gold Funds" (Comprehensive)

Im Chanhee, IBK Industrial Bank Vice President (Head of Asset Management Group)
Leading the Newly Established Asset Management Group
Impact of US Presidential Election: "US Fiscal Deficit Expansion, Dollar Weakness"

[Asia Economy Reporter Park Sun-mi] "It is necessary to apply the fact that Joe Biden, the U.S. Democratic candidate, won the presidential election to asset management. Investments should consider factors leading to a weaker dollar."

Im Chan-hee, Executive Vice President (57), who is responsible for asset management (WM) sales at IBK Industrial Bank, gave this advice regarding asset management strategies in the Biden era. Among the 15 executive vice presidents at IBK, Im is the only female executive and leads the newly established Asset Management Group at IBK since July. She is a WM expert who has been active as a first-generation private banker (PB) for over 10 years and is also a 'sales veteran' who has focused most of her career on retail sales.

In a recent interview with Asia Economy, EVP Im predicted, "In the Biden era, the easing of protectionism could be a positive factor for our stock market, and infrastructure investments centered on stimulus measures and climate change response will likely expand the U.S. fiscal deficit." She added, "The expansion of the U.S. fiscal deficit is a factor that could lower the value of the dollar, while gold prices, which are traded in dollars, are likely to rise."

Accordingly, EVP Im believes it is necessary to invest in domestic equity funds such as the KOSPI 200 index fund, which includes top market capitalization companies, or B·I·G (Bio, Information Technology, Green) funds, as well as gold funds, considering the factors for a weaker dollar after the U.S. presidential election. She advised, "If asset allocation and hedging (risk avoidance) are centered on short-term bond funds, good performance can be expected."

IBK's Asset Management Group was newly established on July 20 as part of organizational restructuring focused on 'innovative management' under President Yoon Jong-won. The group was elevated by merging the Personal Products Department within the existing Personal Customer Group, the WM Business Department, and the trust business previously handled by the Trust Business Group.

EVP Im: "The Greatest Mission Is to Restore Trust in Customer Asset Management"

EVP Im's greatest mission as the leader of the newly elevated organization is to systematize the eradication of incomplete sales and to restore IBK's trust, which was damaged by issues such as the suspension of redemptions of private equity funds like the Discovery Fund, by improving customer returns.

EVP Im said, "I feel a heavy responsibility taking charge of the Asset Management Group during difficult times," and explained, "It is urgent to establish a foundation for asset management so that both small and medium-sized enterprises and individual customers can trust that 'IBK is always safe and reliable'."

In particular, following the private equity fund incident, she set a strategy focusing on establishing a culture of complete sales and managing customer returns for customer-centered asset management. She promised, "We will innovate all areas by advancing and expanding the product sales infrastructure, strengthening sales management, and improving post-sale customer protection systems to preemptively block incomplete sales. We will introduce customer return evaluations and establish a customer-centered asset management sales culture where customer returns align with the bank's profits."

EVP Im stated, "Since the group's establishment, last month we launched 'IBK First Class,' where experts from various fields such as tax, real estate, and finance form a team to provide customized comprehensive asset management consulting to customers." She added, "This was created with the idea of providing complex services to help small and medium-sized enterprises and individual customers who are struggling with asset management due to the COVID-19 situation."

To strengthen competitiveness in non-face-to-face channels, IBK is also promoting digital transformation of asset management with the goal of providing the same customer experience as offline branches. They plan to expand MyData-based asset management services and video consultation-based asset management. EVP Im said, "To meet the increased customer demand for comprehensive asset management consulting and to overcome the limitations of in-person consultations due to COVID-19, IBK First Class will also be expanded into an on-tact consultation service using video consultation systems."