Fractional Investment Platform 'Peace'... First Investment Success with 'Rolex'
Second Product Sold Out in 1 Minute Due to Word of Mouth... Expanding into Artworks
Average Return of 6 Products 44%... Selected by Active Experts
[Asia Economy Sejong=Reporter Lee Junhyung] 'Fractional investment' is a new investment method where multiple people invest together in a specific asset and share ownership. It has the advantage of allowing small investments in high-priced assets that are difficult to purchase alone, thereby generating profits. In South Korea, it began to gain attention primarily among the MZ generation (Millennials + Generation Z) with the music copyright trading platform 'Musicow.' Musicow recently received a corporate valuation of 800 billion KRW and is pursuing a listing on KOSDAQ. The scope of fractional investment targets is steadily expanding to real estate, luxury goods, artworks, Korean beef, and more.
Bisell Standard (CEO Shin Beomjun) is a rapidly growing startup in the fractional investment industry. The company attracted attention by launching the fractional investment platform 'Peace' in April last year. Peace's first product was the luxury watch 'Rolex.' Regardless of the model, Rolex watches trade at least 2 to 3 times their release price in the market. It doesn't end there. Most Rolex watches increase in value over time. Based on this characteristic, the company composed its first fractional investment product with 11 Rolex watches worth 1.18 billion KRW. The minimum investment amount was set at 100,000 KRW. With a 100,000 KRW investment, one becomes a shareholder of the Rolex watches. The first product sold out within 30 minutes of launch. It recorded a 32% return after six months.
Continuing 'Sold Out in 1 Minute'
Word of mouth spread, and from the second product onward, they continued to sell out within one minute. The second product, composed of five Rolex watches worth 1.22 billion KRW, was fully subscribed just 47 seconds after its launch in June last year. The third product, valued at 1.28 billion KRW, took 45 seconds to close investment. Shin Beomjun, CEO of Bisell Standard, explained, "From October last year, Rolex prices rose sharply for about three months," adding, "If the operating period of the first product, which completed profit distribution, had been extended from six months to one year, the return might have exceeded 100%."
The company expanded its domain to famous artworks. The first product was a piece by British artist David Hockney, launched in September last year. The product, composed of one Hockney artwork worth 100 million KRW, was fully subscribed within 27 seconds after launch. The operating period is one year, with an expected return of 35%. The company has consecutively introduced products composed of works by domestic artists such as Lee Ufan. The average return of the six fractional investment products Peace has launched recently is about 44%.
The background of such returns lies in the product planning committee. Peace's fractional investment products cannot be composed solely by internal members like CEO Shin. To enhance the safety of fractional investment products, the company formed a product planning committee consisting of eight external experts, including a 25-year veteran watch consultant, luxury appraisers, and executives of luxury associations. The committee meets more than twice a month to select luxury watches and other items for Peace's fractional investment products and to predict returns. To expand fractional investment products dedicated to artworks, the company is also forming a Peace Artwork Selection Team specializing in artworks. CEO Shin stated, "We are already consulting with active art dealers and curators when selecting artworks," and added, "We are also building partnerships with various galleries."
The first investment product of the fractional investment platform 'Peace.' It consists of 11 Rolex watches worth 118 million KRW. [Photo by Peace website capture]
"Becoming a Prospective Unicorn Within the Year"
Capital market interest is intense. The growth potential of fractional investment platforms has also attracted attention. Last month, the company raised 4.3 billion KRW in pre-Series A funding. Financial venture capitalists (VCs) such as Hana Ventures and KB Investment participated as investors. This signifies that Peace's products have been recognized for their financial viability. The company plans to develop fractional investment products into financial products and launch financial services such as collateral loan services.
They also announced an ambitious plan to become a prospective unicorn (a private company valued at over 100 billion KRW) within the year. CEO Shin's goal is to raise 15 billion KRW in Series A funding in the second half of this year and receive a corporate valuation around 100 billion KRW. There is also a target to increase sales from 800 million KRW last year to 11.1 billion KRW this year. CEO Shin said, "Another goal this year is to be designated as an innovative financial service by the Financial Services Commission," and added, "From 2024, we are also considering expanding fractional investment targets to large physical assets such as port facilities and supply chains."
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