These days rich people talking at Gangnam VVIP PB center
“Tax-real estate is the biggest worry”
Woori Bank TCE Center in Yeoksam-dong, Seoul. Photo = Reporter Song Young-chan [email protected]
Interest in the stock market is hot. People who have never held stocks, you and I, are opening stock accounts, breaking deposits and transferring funds to the stock market. As interest rates are lowering, the perception that’if you just leave cash, you lose’ seems to be higher than ever.
How do the traditional rich people, also known as’Gangnam Rich Man,’ take advantage of the current market conditions? On the 12th, I visited the TCE Gangnam Center of Woori Bank in Yeoksam-dong, Seoul. This is a premium PB (private) center that targets asset prices with over 3 billion won in financial assets, and opened last year. The luxurious interior using the finest materials and the busy PBs (private bankers) stood out.
I asked what the pattern of counseling in this place dealing with’the richest people’ is these days. Surprisingly, the answer came back, saying,’No one is increasing the share of stocks significantly. Since the source to be called in the first place is your own business, parental donation, or real estate, you are not very interested in making a’short bat investment’ with stocks. In addition, due to the large amount of assets, there is a tendency to be reluctant to invest with a high probability of loss. If an ant loses 10% of its investment assets, the amount of loss is not large, but in the case of the asset price, losing 10% will result in a large loss.
It is said that most of the stock trading via mobile is also not preferred. First of all, most of the age groups of customers who use PB centers are middle-aged. It means that there are times when you feel’uneasy’ to trade large amounts of money face-to-face. Because of this, it explains that many people feel comfortable making investments after having a face-to-face consultation even if they pay a fee to PBs.
Of course, even among the rich, there is a temperature difference according to age. Young male asset owners tend to increase the proportion of direct investment. Han Soo-yeon, deputy manager of Woori Bank’s TCE Gangnam Center, said, “Young wealthy people such as venture businessmen with financial assets of between 1 billion and 3 billion won do not have time to come to the bank because most of them are businessmen.” I explained.
On the other hand, it is said that more and more people in their 50s join funds or ETFs after consulting a bank. These days, index funds (exponential funds) have risen a lot, and many people have had fun here. As for the themes, autonomous driving, electric vehicles, and eco-friendly are still popular.
Bitcoin is said to have little interest yet. It is said that there are few cases of consulting at PB centers as they believe that the safety of their assets is not guaranteed. It may be because of the interest in protecting the assets and raising the appropriate level of return rather than raising the rate of return through’blind investment’ because of the wealth already accumulated.
It is said that real estate and tax are still the most consulted areas. Traditional rich people are most concerned about how to reduce taxes due to the recent tightening of real estate regulations. Still, if there is extra money, they are worried about purchasing commercial real estate or additional homes such as’Little Building’. The’thunderbolt rich’, who received a lot of land compensation due to the recent 3rd new town development, said that the proportion of the money earned on the land was much higher to invest in real estate.
What impressed me the most was that there was an order in the principles by which the rich act. When they invest, they say that 1) whether they can be liquidated quickly with cash, 2) whether the risk is high, 3) whether the rate of return is good, etc. There has also been an opinion that these days,’ants’ often consider investing in the reverse order, which is a concern.
Of course, it may be’their own world’ with a lot of accumulated wealth, but I think it would be helpful to refer to the current patterns of behavior of the rich rather than blindly investing because the stock market is booming.
Reporter Jeong So-ram [email protected]