Samsung Securities "Family Office Surpasses '100 Families · 30 Trillion'"

After 4 Years Since Business Launch... Average Deposit of 300 Billion Won Per Family

Samsung Securities has achieved '100 family offices and an asset size of 30 trillion KRW' just four years after starting its family office business. The 30 trillion KRW in assets far exceeds the average assets of the seven major mutual aid associations in South Korea.

On the 17th, Samsung Securities announced that as of the end of May, it surpassed 100 family office clients and 30 trillion KRW in entrusted assets. This milestone comes four years after Samsung Securities launched the industry's first family office service in June 2020. Notably, since opening the 'SNI Family Office Center,' a dedicated organization for super-rich clients, in January this year, it has attracted an additional 20 families and 10 trillion KRW in assets within five months. The average asset size per family is 300 billion KRW.

By family type, 50% are traditional wealthy families, 20% are emerging wealthy individuals such as startup founders, and 30% are owners who acquired cash worth several hundred billion KRW after selling shares through mergers and acquisitions (M&A). Among them, the proportion of owners recently involved in share M&A is increasing. Jeong Yeon-gyu, head of SNI/Corporate Strategy at Samsung Securities, said, "The number of ultra-high-net-worth individuals selling companies to private equity (PE) firms or large corporations is increasing, and the proportion of owners selling shares is expected to grow gradually."

The characteristics of family office clients were analyzed into three main points: △portfolio investment diversified across three or more asset classes △long-term investment needs comparable to institutional investors △and a strong demand for investment information. In terms of portfolio investment, the asset allocation was 20% stocks, 67% financial products, and 13% cash. More than 40% is composed of bonds to ensure stability, and 20% is invested in various financial products. Clients hold more than 10% in cash-equivalent assets, with the dollar asset ratio recorded at 25.4%.

To meet the second characteristic, the 'long-term investment need,' Samsung Securities offers opportunities to co-invest with Samsung Securities in exclusive products for institutional investors that have passed its internal capital investment review process. Samsung Securities exclusively supplies private alternative funds from global top-tier asset managers such as Goldman Sachs, Carlyle, and MBK Partners in South Korea. It has raised 1 trillion KRW across 30 family office-exclusive products, including high-quality domestic unlisted project deals and private loan investments linked with investment banking (IB).

To satisfy the demand for investment information, Samsung Securities also conducts customized seminars and lectures for family office clients. The average number of sessions provided per family is about 10 times annually. Since many heirs do not major in finance, there is a strong need for education on financial and tax matters for business succession and family asset management. Samsung Securities has developed a curriculum covering tax, real estate, economics, and both basic and advanced investment studies, providing one-on-one tailored education. In May, it held a private lunch seminar exclusively for family office clients featuring the main speaker of the Samsung Global Investors Conference. On the 18th of this month, a dialogue and discussion on 'The Future of AI and Robotics' will be held with Professor Kim Sang-bae, a leading scholar in robotics at MIT.

Park Kyung-hee, head of the WM Division at Samsung Securities, said, "Since starting asset management services for the first time in the domestic securities industry in 2002, Samsung Securities has led ultra-high-net-worth asset management services in Korea by launching the industry's first ultra-high-net-worth exclusive SNI brand in 2010 and the family office service in 2020." He added, "We will not be satisfied with achieving 100 family offices and 30 trillion KRW in assets but will further enhance global investment services and non-financial services to welcome more family office clients."