From products to design in asset management

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From products to design in asset management

Published: 23 Apr. 2026, 00:05

Audio report: written by reporters, read by AI

Shim Dong-kyu

The author is an executive managing director of the PB Strategy Division at Korea Investment & Securities.

In the past, asset management depended largely on the capabilities of individual private bankers serving high-net-worth clients. That model is no longer sufficient. Clients are now segmented across individuals and corporations, employees and retirees, retail investors and business owners. Investment targets have also expanded beyond cash deposits and real estate to include overseas equities, exchange-traded funds, bonds, pensions and alternative assets. Asset management is no longer about selling products, but about designing how assets are divided and connected.

Jung Moon-chul, CEO of KB Life Insurance, tours the Age Tech Lab with participants ahead of the opening ceremony of the KB Golden Life Flagship Center, an “insurance-banking hybrid branch” combining insurance, senior care and banking services, at KB Life Tower in Yeoksam-dong, Gangnam District, Seoul, on Jan. 20. [NEWS1]

This shift begins with household choices. According to the Survey of Household Finances and Living Conditions in 2025, real assets still account for more than 75 percent of total holdings. Yet in managing surplus funds, financial investments now far exceed real estate. The key is not the proportion but the direction. Investors are moving from asking what to buy to considering how to allocate.

Overseas investments illustrate this gap most clearly. While individual investment in foreign stocks has surged in recent years, portfolios have become more concentrated. Capital has crossed borders, but investments remain focused on a limited number of countries and stocks. Investors speak of diversification but choose concentration. As global investment expands, this paradox becomes more pronounced. This is where financial firms are differentiated. Expanding product offerings is easy; designing asset allocation is not.

The same principle applies to tax planning and inheritance. What matters more than returns is after-tax performance and the structure of wealth transfer. Yet many assets remain tied to inefficient accounts and outdated methods. As aging accelerates and demand for business succession grows, this gap is likely to widen. Asset management does not end with investment; it is only complete when preservation and transfer are planned.

This trend is spreading beyond ultra-high-net-worth individuals to ordinary clients and corporate customers. Individuals must consider retirement and taxation together, while companies must manage idle funds alongside owner-related risks. Real estate is no exception. The issue is no longer how much to acquire, but what role it plays within an overall portfolio. Concentrated assets increase risk before generating returns.

Ultimately, competition lies not in products but in structure. The key question is not who sells more products, but who offers better asset allocation, tax strategy and succession planning. Investors have entered global markets, but their methods remain anchored in the past. Performance is shaped not by assets, but by mindset.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.