Samsung Securities Achieves Industry-First Asset Milestones: 100 Trillion KRW for Ultra-High Net Worth Individuals and 100 Trillion KRW for Corporate Clients

[Asia Economy Reporter Ji-hwan Park] Samsung Securities announced on the 21st that it has become the first in the industry to achieve the 100·100 club, with individual customers (SNI) holding assets of 3 billion KRW or more and corporate customers each surpassing 100 trillion KRW in deposited assets.

As of the end of June, the balance of ultra-high-net-worth individuals with assets of 3 billion KRW or more at Samsung Securities was 108.5 trillion KRW, and corporate customers' assets reached 100.3 trillion KRW. The scale of corporate customer assets excludes assets deposited by Samsung affiliates. A Samsung Securities official explained, "We have achieved 100 trillion KRW in assets in both individual and corporate businesses, something no other company has done before," adding, "This is the result of the 'money move' caused by the ultra-low interest rate era that began in 2019."

At the end of 2019, assets of high-net-worth individuals with 3 billion KRW or more and corporate customers stood at 69.1 trillion KRW and 67.6 trillion KRW respectively, but increased by about 50% in two and a half years, surpassing 100 trillion KRW. The number of customers also increased by 66% and 10.1%, reaching 3,310 asset holders and 47,526 corporations. On average per person, high-net-worth individuals deposited 3.279 billion KRW each, while corporate customers deposited 2.09 billion KRW per corporation at Samsung Securities.

Among ultra-high-net-worth individuals, the number of customers with financial assets deposited between 5 billion KRW and 10 billion KRW increased the most significantly (74.7%) since 2019. By age group, those aged 60 and above accounted for 56.3%, followed by those in their 50s and 40s at 24.7% and 12.5%, respectively. This reflects the characteristic of investors accumulating wealth throughout their life cycles through their main occupations and investments. By gender, male customers increased by 15%, and female customers by 19.6%.

In terms of returns, the annual average yield, calculated as the arithmetic mean of year-end balance yields from 2019 to the first half of this year, was 12.8%, consistently maintaining double-digit growth. For corporations, the arithmetic average balance yield since 2019 was 3.6% annually, significantly outperforming market interest rates.

Notably, overseas stocks surged by 258.4% for high-net-worth individuals and 192.7% for corporate customers compared to 2019. This is attributed to the growing consensus over the past few years on building global portfolios through overseas stocks.

Regarding domestic stock investments, seven out of the top ten purchased stocks by high-net-worth individuals and corporations overlapped as of the first half of this year. Most were large blue-chip stocks such as Samsung Electronics, NAVER, Kakao, SK Hynix, Hyundai Motor, SK Innovation, and KODEX 200. In contrast, the proportion of ETFs (Exchange-Traded Funds) that leverage volatility, such as leverage and inverse 2X ETFs, which were heavily included among the top purchased stocks by high-net-worth individuals and corporations as of the end of June last year, significantly decreased in the first half of this year.

Samsung Securities provides customized specialized services to activate investments by high-net-worth individuals and corporate customers. In July last year, Samsung Securities launched the industry's first investment partner-level asset management service called 'Family Office' for asset holders with financial assets exceeding 100 billion KRW. Within one year, over 60 Family Office contracts were signed, attracting assets exceeding 10 trillion KRW.

For corporate customers, the 'Corporate Customer Total Solution,' a customized financial service, played a significant role. Centered on the head office's corporate consulting team, this service offers various financial solutions to companies, including fundraising and mergers and acquisitions. It provides all specialized financial services needed by corporations, from fundraising and management to investor relations, shareholder meeting support, and pension services.

Community services such as CEO (Chief Executive Officer) and CFO (Chief Financial Officer) forums for mid-sized and large companies, the Next CEO Forum for successor managers, and the 'Untact Summit' providing the latest management information for mid-sized and small companies are also being offered.

Jae-hoon Sa, Vice President and Head of Channel Sales Division at Samsung Securities, said, "High-net-worth individuals and corporate customers are partners growing together with the company, so achieving 100 trillion KRW in both sectors is especially meaningful," adding, "We will continue to develop services that lead the industry and market to provide greater satisfaction to our customers."