Wealth Management - South Korea

South Korea

Assets under Management in the Wealth Management market are projected to reach €1,108.00bn in 2024.
Financial Advisory dominates the market with a projected market volume of €1,090.00bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.20%, resulting in a market volume of €1,176.00bn by 2029.

Key regions: United States, United Kingdom, Germany, Hong Kong, Singapore

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Analyst Opinion

The Wealth Management market in South Korea has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in South Korea have been shifting towards a more sophisticated and diversified approach to wealth management.

As the country's economy has grown and become more prosperous, individuals have accumulated more wealth and are seeking professional advice to manage and grow their assets. This has led to an increased demand for wealth management services, including investment advisory, financial planning, and asset allocation. In addition, South Korean customers have shown a preference for personalized and tailored wealth management solutions.

They value the expertise and guidance of wealth managers who can provide customized strategies based on their individual financial goals and risk tolerance. This has led to the rise of boutique wealth management firms that specialize in catering to the unique needs of high-net-worth individuals in South Korea. Trends in the market also play a significant role in the development of the Wealth Management market in South Korea.

One notable trend is the increasing adoption of digital technology in wealth management services. South Korean customers are becoming more tech-savvy and are embracing digital platforms and mobile applications for their financial needs. This has led to the emergence of robo-advisory services, which provide automated investment advice and portfolio management through algorithms and artificial intelligence.

Another trend is the growing interest in sustainable and socially responsible investing (SRI) in South Korea. Customers are becoming more conscious of the environmental, social, and governance (ESG) factors associated with their investments and are seeking wealth management solutions that align with their values. This trend has led to the development of specialized SRI products and the integration of ESG criteria into investment strategies.

Local special circumstances also contribute to the growth of the Wealth Management market in South Korea. The country's rapidly aging population and low birth rate have resulted in a significant wealth transfer from older generations to younger ones. As a result, there is a growing need for wealth management services to help manage and preserve family wealth across generations.

Furthermore, South Korea has a highly competitive financial services industry, with both domestic and international players vying for market share. This competition has led to innovation and the introduction of new products and services in the wealth management sector, benefiting customers with a wider range of options and improved service quality. Underlying macroeconomic factors, such as favorable economic conditions and government policies, have also contributed to the development of the Wealth Management market in South Korea.

The country's strong economic growth, stable political environment, and supportive regulatory framework have attracted both domestic and foreign investors, leading to increased investment opportunities and wealth creation. In conclusion, the Wealth Management market in South Korea is developing rapidly due to customer preferences for personalized and tailored solutions, market trends towards digitalization and sustainable investing, local special circumstances such as wealth transfer and competition, and underlying macroeconomic factors including favorable economic conditions and government policies. This growth is expected to continue as individuals in South Korea increasingly seek professional advice to manage and grow their wealth in an increasingly complex financial landscape.

Methodology

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).