[Family Office Competition]②-1 NH Investment & Securities "Rapid Growth Driven by Industry-Leading IB Capabilities"

Interview with Kwangsoo Bae, Head of WM Division at NH Investment & Securities
"Unrivaled talent pool and IB capabilities drive rapid growth"
Bond procurement and tax consulting attract chaebol families
"Focus on asset preservation and succession, not just growth"
Competition intensifies as banks and law firms enter the market

The domestic securities family office market is growing, led by major firms. Among them, NH Investment & Securities is experiencing rapid growth, backed by industry-leading investment banking (IB) capabilities. NH Investment & Securities officially entered the family office market in October 2021 by establishing the 'Premier Blue Family Office' for ultra-high-net-worth individuals. In just three years and six months since its launch, the number of client families has surpassed 180. This is the largest in the industry, with 78 families joining last year alone?an increase of more than 120% compared to the previous year.

Kwangsoo Bae, Head of WM Division, NH Investment & Securities

What is the secret behind this success? Kwangsoo Bae, Head of the WM (Wealth Management) Division at NH Investment & Securities, cited the company's outstanding and extensive talent pool as a unique differentiator, in addition to its IB capabilities. In a recent interview with Asia Economy, Bae said, "The clients and professionals we acquired through the takeover of Merrill Lynch's private banker (PB) division, as well as the excellent PBs we recruited when Citibank withdrew from the domestic retail market, have remained with us and have not left." He explained that by absorbing Merrill Lynch's unparalleled overseas bond procurement capabilities and Citibank's wealth management expertise, NH Investment & Securities was able to broaden the foundation of its family office services.

For family offices serving chaebol families, bond procurement capabilities are a tremendous asset. This is because strategies such as investing in Brazilian government bonds, which are exempt from interest and capital gains taxes, are gaining significant popularity among high-net-worth individuals. According to the '2025 Korea Wealth Report' published recently by Hana Financial Research Institute, 43% of domestic 'wealthy individuals' (those with financial assets of 1 billion KRW or more) held bonds last year. The proportion of respondents who said they intend to invest in bonds this year is 32%, ranking third among asset types after deposits and gold. Bae explained the preference for safe assets by saying, "Most clients using family office services are less concerned about how to grow their assets and more focused on how to preserve them safely and pass them on to the next generation."

The industry's largest 'Tax Center,' established by NH Investment & Securities in 2022, is also attracting chaebol families to NH. According to KB Management Research Institute, 'tax issues' ranked second among the asset management challenges cited by wealthy individuals with total assets of 10 billion KRW or more last year, highlighting that tax savings are a key concern for family office clients. Bae said, "After business succession, the next biggest concern for family office clients is tax savings," adding, "We have 20 dedicated tax accountants within the company, the largest number in the industry, and probably more than most banks."

NH Investment & Securities' family office client criteria require deposits of at least 10 billion KRW with the company. Experts generally agree that if a client has 10 billion KRW deposited with a single financial institution, their total financial assets typically exceed 30 billion KRW. Bae explained, "Currently, about 60% of our clients are business owner families, 20-30% are old-money families who have accumulated wealth through real estate and other means over generations, and 10-20% are newly wealthy individuals who made their fortunes in IT or platform businesses." If a client's children do not wish to succeed the family business, arranging an appropriate buyer is also part of the family office's role.

Despite leading the family office industry, NH Investment & Securities still faces challenges. Competition is intensifying as not only securities firms but also banks and accounting and law firms are entering the market. In particular, the vast customer base held by large rival banks provides a foundation for them to gain a competitive edge in Korea, where the capital market is smaller than in the United States.

Bae noted, "A key challenge is changing the perception so that securities firms are seen as just as trustworthy as banks," adding, "Entering the Integrated Investment Account (IMA) market could be an opportunity for securities firms to gain the 'principal protection' image that people typically associate with banks." However, he also pointed out that for this to happen, institutional fairness must be achieved between securities firms, which are subject to stricter regulations, and banks, which are relatively less regulated.

Bae offered a positive outlook on the future growth of the domestic family office market. He said, "When the number of our family office service clients surpassed 170 families, we analyzed that their contribution to company revenue was much higher than that of regular clients," adding, "As Korea's aging population and wealth concentration intensify, the demand from clients wishing to pass on their accumulated assets will only continue to grow."