Dedicated Consultation Room with Smart Mirror Applied... Real-Time Video Consultation with Headquarters Staff Available
28th, inside Shinhan PWM Family Office Seoul Center, Jung-gu, Seoul. / Photo by Jinhyung Kang aymsdream@
[Asia Economy Reporter Yu Je-hoon] "Ultra-high-net-worth clients have various needs, including maintaining and expanding their assets, ensuring stable inheritance to their children, investing in exclusive financial products unavailable to others, and enjoying diverse non-financial services. The intention is to comprehensively manage these needs not only through private bankers (PBs) but also at the headquarters level to fulfill these demands."
On the 2nd, the exterior of Shinhan PWM Family Office Seoul Center (SFC) located in the Seoul Chamber of Commerce and Industry building in Jung-gu, Seoul, gave a sense of neatness without any superfluous elements. The approximately 950㎡ SFC Seoul Center is divided into areas where Shinhan Bank, Shinhan Investment Corp., and real estate-related organizations work, while the rest consists of exclusive consultation rooms, briefing rooms, and general consultation rooms for ultra-high-net-worth clients. Since SFC targets clients with assets exceeding 10 billion KRW, the company explained that top-tier personnel were selected not only from PBs but also from Shinhan Bank and Shinhan Investment Corp.
The most eye-catching feature at the SFC Seoul Center was the 'Family Office Exclusive Consultation Room' made of glass walls. This consultation room, equipped with a smart mirror, boasts openness during normal times but naturally becomes opaque to block outside views once a client arrives for consultation. Additionally, the exclusive consultation room is equipped with a large monitor and a video consultation system, enabling consultations using various visual materials and data, as well as real-time video consultations with dedicated asset management (WM) teams such as portfolio and tax specialists at Shinhan Bank’s headquarters. Given the COVID-19 pandemic situation, remote video consultations via PC, smartphone, and tablet are also available.
Although the system might seem unfamiliar to traditional wealthy clients, the evaluation from actual ultra-high-net-worth clients has been positive, according to SFC. An SFC official said, "Recently, six of our staff conducted a presentation in the exclusive consultation room for an ultra-high-net-worth client who is the CEO of a listed company on the Korea Exchange," adding, "A characteristic of these ultra-high-net-worth clients is that they engage with multiple financial institutions and compare and select various services. Ultimately, they evaluated it as 'the best asset management presentation they have ever received.' We expect several transactions to proceed in the future."
28th, inside Shinhan PWM Family Office Seoul Center, Jung-gu, Seoul. / Photo by Jinhyung Kang aymsdream@
Behind the exclusive consultation room are a large briefing room for various investment seminars and individual consultation rooms where personalized asset management takes place. One individual consultation room toured that day featured luxurious interiors reminiscent of a hotel suite. However, unexpectedly, there was also a consultation room that resembled a typical business hotel. Choi Gap-su, head of the SFC Seoul Center, explained the background, saying, "Even among ultra-high-net-worth clients, some prefer luxurious interiors while others prefer a sleek, minimalist modern design, so tastes vary."
The so-called 'Family Office' targeting ultra-high-net-worth individuals and their families has grown mainly in advanced markets such as the United States. There are family offices dedicated solely to specific wealthy individuals or families, such as billionaire investor George Soros’s 'Soros Fund Management,' and investment banks (IBs) have also established dedicated teams to actively operate related services.
In Korea, the number of ultra-high-net-worth individuals has been increasing due to the prolonged low-interest-rate environment over recent years. The target clients of SFC are categorized into traditional wealthy groups such as members of large conglomerate families and owners of medium and small enterprises approaching retirement, as well as emerging young rich who have succeeded through IT, venture, and startup entrepreneurship. While the former group is more interested in stable asset growth and succession, the latter tends to focus on new investment opportunities based on abundant liquidity.
Jeong Taeksu (right), Head of Shinhan WM Consulting Center, and Choi Gapsu, Head of Shinhan PWM Family Office Seoul Center, are posing before an interview on the 28th at the Shinhan PWM Family Office Seoul Center in Jung-gu, Seoul. Photo by Kang Jinhyung aymsdream@
Although asset management services for high-net-worth individuals have existed in the financial sector, Shinhan Financial Group has branded this as an independent brand for the first time in the financial industry. Given the fiercely competitive market among banks, securities firms, and asset management companies, the intention is to secure the VVIP market with a specialized brand. Jung Taek-su, head of Shinhan Bank’s WM Consulting Center, said, "In fact, entrepreneurs and ultra-high-net-worth individuals never deal with only one financial institution for business or other reasons," adding, "They continuously provide feedback on how well services are delivered and whether satisfactory results are achieved over a certain period while dealing with multiple financial institutions. Therefore, we cannot afford to relax even for a moment."
As a brand for VVIPs, concierge services will be provided in an 'ultra-close' manner. Typical services include simple travel, golf, restaurant, and overseas concert reservations, as well as participation in investment seminars, donations, foundation establishment, and social contribution activities. Jung explained, "While existing financial sector concierge services allowed customers to choose from predefined services, SFC’s concierge service has a dedicated concierge team within the family office team that provides one-on-one customized services."
Networking is also an indispensable service. Plans include matchmaking services, mentoring services for ultra-high-net-worth clients, and specialized economic education for their children to contribute to network formation. Jung said, "The networks built on such diverse networking opportunities can become another asset growth opportunity for ultra-high-net-worth clients."
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