High-net-worth customers at banks surge amid popularity of wealth management

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The combined assets held by high net worth customers deposited with the country’s four leading commercial lenders — KB Kookmin, Shinhan, Hana and Woori — have reached 180 trillion won ($130 billion), market watchers said Wednesday.

The development is explained by the surging popularity of private banking services provided by the lenders.

According to financial market data, the assets came to 179.36 trillion won as of the end of March, up more than 4 trillion won from the end of 2024.

The figure is a further jump from 155.2 trillion won in 2022 and 165.3 trillion won in 2023.

As of March, more than 72,600 customers had at least 1 billion won in assets deposited with the four banks, up 2,082 from three months earlier.

Their assets averaged 2.47 billion won, and more than 1,620 customers had over 10 billion won deposited.

Many were able to augment their asset value because of ultra low interest rates and ample liquidity during the COVID-19 pandemic.

Startup founders generated handsome profits from initial public offerings, and young people who made significant investments in stocks and cryptocurrencies saw their asset valuation spike.

Among the banks’ key customer groups are baby boomers born between 1946 and 1964, now in their 60s and 70s.

Their concerns are inheritance, tax and the overall transfer of financial assets.

The banks are using private banking centers as part of their wealth management services, providing consultations not only for financial investment but also taxes and inheritance.

They are competing with brokerages, which have long dominated investment opportunities involving private equity, unlisted companies and commercial office buildings.

“We are providing comprehensive consulting services for not only the older generation but also the young generation,” an industry official said. “Our services are tailored to their needs, including post-retirement planning and overall asset increase.”