Wealth Management - South Korea | Statista Market Forecast

Assets under Management in the Wealth Management market are projected to reach US$1.21tn in 2024.
Financial Advisory dominates the market with a projected market volume of US$1.19tn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 1.36%, resulting in a market volume of US$1.29tn by 2029.

Definition:

Wealth management is a service provided by financial institutions, such as banks or investment firms, to help individuals manage their money and investments. The goal of wealth management is to help people grow and protect their wealth over time, by creating personalized investment plans that consider their financial goals, risk tolerance, and overall financial situation. This goal ultimately emphasizes wealth creation through wealth preservation.

Structure:

The Wealth Management market consists of two different segments, Financial Advisory and Digital Investment. Financial Advisory covers traditional financial advisory services and provides a broader look into the revenue generated by this offering. Digital Investment contains automated investment services (Robo-Advisors) and online trading services (Neobrokers) that go beyond the means of traditional financial advisory services.

Additional information:

The market comprises of revenues, number of advisors, average revenue per advisor, assets under management (AUM), users, average revenue per user, and average AUM per user. Revenues are generated through the financial advisory services offered by the financial institutions within the Wealth Management market space. The market only displays B2C revenues and users for the above-mentioned segments and subsegments; B2B and B2G revenues are not included. Additional definitions for each segment can be found on the respective segment pages.
Market numbers for Digital Investment are also featured among our digital markets, namely in the Digital Investment segment of the Fintech market.
Key players in the market include financial institutions such as BlackRock, Vanguard Group, Fidelity Investments, State Street Global, and J.P. Morgan Chase & Co.

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Traditional & Digital Wealth Management (non-automated & automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
Digital Investment, incl. Robo-advisors and Neobrokers
Full-Service Products for Investing and Trading
Retail/Non-Professional Investors

Commercial Assets or Assets Under Custody
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Full-Service Products for Insurance and Lending

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.

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).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.