From Startup CEOs to Big Tech Executives... Gangnam's Emerging Wealthy Gather at 'Igot'

[Flagship PB Center Chronicles③] Visiting Woori Bank TCE Signature Center

The appearance of Woori Bank TCE Signature Center located in Seocho-gu, Seoul

Editor's NoteThe competition among banks to establish flagship Private Banking (PB) centers for high-net-worth individuals has intensified. Hana Bank, a traditional leader in PB, has consecutively opened Club 1 centers No. 1 and 2 in Samseong-dong, Gangnam-gu, and Hannam-dong, Yongsan-gu. Meanwhile, KB Kookmin Bank unveiled 'KB Gold & Wise the FIRST,' a flagship center located in Apgujeong-dong, Gangnam-gu, one of Seoul's representative affluent neighborhoods. Shinhan Bank, which launched the 'Shinhan PWM Family Office (SFC)' earlier this year to provide asset management services for clients with financial assets exceeding 10 billion KRW, is preparing to establish a new-concept PB center in Apgujeong, aiming to open next year or the year after. Woori Bank is also expanding its 'Two Chairs Exclusive (TCE)' center for clients with average balances over 1 billion KRW. The acceleration in building flagship PB centers is due to the increase in not only traditional wealthy individuals but also young rich who have accumulated wealth through virtual assets amid years of low interest rates and rising asset prices. According to the '2021 Korea Wealth Report' published last year by KB Financial Group Management Research Institute, the number of 'wealthy' individuals with financial assets exceeding 1 billion KRW reached approximately 393,000 in 2020, a 45% increase compared to five years ago. Notably, among the total financial assets of 2,618 trillion KRW held by the wealthy, ultra-high-net-worth individuals with assets over 30 billion KRW (7,800 people, 2.0%) hold 1,204 trillion KRW, and high-net-worth individuals with assets between 10 billion and 30 billion KRW (about 28,000 people, 7.2%) hold 489 trillion KRW. This explains why each bank is eager to build flagship PB centers.

"The number of 'young rich' clients is growing, including those who succeeded with startups, executives from big tech companies in Pangyo, and even foreign big tech CEOs."

Woori Bank's TCE Signature Center, located in the heart of Gangnam Station, gathers traditional wealthy individuals from areas like Cheongdam, Banpo, and Dogok, as well as emerging wealthy startup founders. The amount of money managed at this branch alone reaches 700 billion KRW.

Last week in the afternoon, the Woori Bank TCE Signature Center, targeting clients with assets over 3 billion KRW and located at the Gangnam Station intersection, featured floor-to-ceiling windows offering an expansive view. The center spans 330 pyeong (approximately 1,090 square meters). If Yeouido's 63 Building has an observatory, this place could be called the Gangnam Station observatory, as it overlooks the entire Gangnam area. The layout allows clients to enjoy the Gangnam scenery after consultations, creating an interior that evokes a sense of success.

The center has 10 consultation rooms, and the safe deposit vault contains 1,000 safety deposit boxes. The space is designed like the lobby of a modern luxury hotel, exuding an upscale atmosphere. Clients can relax here while enjoying the open view. Deputy Branch Manager Kim Yong-beom explained, "Since the building itself is not accessible to just anyone, privacy is maintained, and clients feel well-treated."

Interest from Young Rich

The number of 'young rich' clients visiting this center is increasing. Many are developers who have transitioned from big tech companies in Pangyo. Deputy Branch Manager Kim said, "Gangnam has many individual clients with large cash holdings," adding, "Recently, the number of clients in their 30s and 40s who have taken startups or venture companies public has increased."

Their main focus tends to be on tax matters. Having accumulated wealth through corporate investments or IPOs, they often seek tax services from the bank. Many are interested in tax-exempt or separately taxed products. PB Team Leader Ji Eun-young said, "Startup founders tend to manage aggressive investments themselves and invest bank-managed assets in individual bonds," adding, "Since they pay comprehensive income tax on their business income, they look for ways to reduce their tax burden."

Deputy Branch Manager Kim explained, "While traditional high-net-worth individuals preferred fixed deposits, insurance, or funds, young rich clients are more proactive and independent, so we tailor asset management proposals to their lifestyles." For this reason, the center offers various proposals suited to clients' preferences. The center also provides Woori Bank's specialized real estate services. Using Woori Bank's infrastructure, clients who want to buy buildings but lack real estate knowledge receive listings, information, and various professional services. This often leads to real estate-related loans through Woori Bank, creating a 'virtuous cycle.'

Deputy Branch Manager Kim Yong-beom (left) and PB Team Leader Ji Eun-young (right)

Mass Recruitment from Citi Bank

This center recruited 13 private bankers (PBs) from Citi Bank earlier this year. Citi Bank, renowned in the wealth management (WM) field, has recently seen its experts scouted by the four major banks. Deputy Branch Manager Kim and Team Leader Ji are veterans with over 15 years of experience at Citi Bank. Kim said, "It's not just about sales; dealing with high-net-worth clients has given us diverse experience," adding, "While individual ability is important, the large-scale transition allows systematic management as a 'team.'" As these bankers moved over, existing Citi Bank clients naturally flowed to Woori Bank.

One of the center's strengths is the dedicated PB system. Team Leader Ji explained, "Clients have a dedicated PB, not a different employee each visit, and a team of 4-5 members consults and manages the client." Deputy Branch Manager Kim added, "Rather than relying on individual ability, we approach systematically, combining inheritance work, tax, lawyers, and appraisers."

They have also gained know-how in advising children of high-net-worth clients. Recently, wealthy clients have shown great interest in having their children employed by foreign companies like Apple and Amazon. Having dealt with a wide range of clients, they provide employment advice based on various information they have gathered. Deputy Branch Manager Kim emphasized, "It's not about being number one in hardware but about software. The core is that the system and experts in each field work closely with clients to provide services."