Rise of S. Korean style family offices

June 1, 2014 Leave a comment

Rise of S. Korean style family offices

Kang Doo-soon, Seok Min-soo

2014.05.30 17:11:14

Family offices are on the rise in South Korea. They have been founded by entrepreneurs who emerged as millionaires with assets valued at several hundred billion won ($1=1,020 won) through sale of their own start-ups. This ushers in the era of family office, a company set up by a rich individual to manage his own investments. 
Unlike the existing chaebols or conglomerates, seeking enlargement while maintaining businesses, family offices place focus on efficient management of wealth from business liquidation. This suggests wealth possession is experiencing a transformation.
Over 4,000 family offices are managing wealth of the affluent around the world including Europe and North America, according to a global consulting firm Capgemini. The average assets under management of the family offices are estimated at one trillion won to 1.2 trillion won.
Family offices in the West center on heritance and family wealth management while the focus of their South Korean counterparts is on wealth management of the first generation founders.
Atinum Partners, set up by investment guru Lee Min-joo, is among the very first Korean style family offices. Chairman Won Jae-yeon is also deemed as the first generation of the family office owner. Mr Won possesses a family office Geyser and a new technology financial firm Zenitas after selling a broadcasting service provider Qrix.
Others include Sungdam, once a leading player in local salt farm business, now a market maker in the real estate market and Simonne Investment built by Simonne chairman Park Eun-gwan.

Filed under Macro Trends

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