Abstract
Overview
Introduction
The South Korean Wealth Market 2006 is Datamonitor' s guide to the affluent wealth landscape in South Korea. Following the popularity of Datamonitor' s recent research in the Indian and Chinese markets, the report explores one of the less high-profile emerging wealth markets in the Asia-Pacific region.
Scope
- Data was collected directly from governmental sources such as central banks, mutual fund associations and stock exchanges.
- Insight into the respective financial services market was obtained through primary interviews with the main wealth managers and private bankers.
- Sizing and forecasting of high net worth individuals were generated by Datamonitor' s proprietary Global Wealth Model.
Report Highlights
Citigroup Private Bank is seen as a big threat in the Korean market. The bank has a team of local Korean private bankers, which is important in the market. However, Citibank' s strength lies in combining this local team with its international network and subsequent access to a wide range of diverse products and services.
In 2005 investors were selling their equity holdings to purchase property because of rapidly spiraling house prices. At the beginning of 2006 Korea Investment and Securities said that the investment pattern was ill advised and could be disastrous for the balanced investment portfolio as property prices had already approached their peaks.
Foreign banks will have to contend with the fact that the domestic banks are using aggressive pricing tactics, which will make any growth very difficult - especially if the banks want to do it in a profitable way.
Reasons to Purchase
- Find out why South Korea is an attractive market and its advantages over other emerging economies.
- Find out how large the market is now and how large it will be in 2010
- Find out how big the gaps are and what the opportunities for growth will be going forward
Table of Contents
- CHAPTER 1 INTRODUCTION
- What is this report about?
- Who is the target reader?
- How to use this report
- CHAPTER 2 MACROECONOMIC OVERVIEW
- Market comparisons
- The four economies
- Sectoral breakdown
- Size and growth
- GDP per capita
- Inflation and consumer prices
- Population and unemployment
- The four economies
- Market comparisons
- CHAPTER 3 THE SOUTH KOREAN WEALTH MARKET
- Market background
- Savings and investments
- Size of the affluent market
- Financial services and the regulatory environment
- Financial sector restructure
- Competitive dynamics
- Commercial banks
- Private/ premier banking and wealth management
- Developments in 2006
- April 2006 - Credit Suisse create Korean JV
- July 2006 - UBS acquires a stake in Korean asset manager
- August 2006 - Standard Chartered bullish on market share
- Future focus
- The affluent outlook
- Mass affluent segment
- High net worth segment
- The affluent outlook
- Market background
- CHAPTER 4 APPENDIX
- Data
- Definitions
- AAGR
- Affluent
- CAGR
- Gini index
- Liquid assets
- Liquid asset bands
- Research methodology
- The Global Wealth Model
- The UK sub model
- Asia-Pacific sub model
- Forecasting methodology
- Bespoke Wealth Market Sizing
- Further reading
- Asia-Pacific contacts
- List of Tables
- Table 1: Sectoral breakdown of GDP in Malaysia, Thailand, South Korea and Taiwan, 2005
- Table 2: Indexed GDP growth, 1999=100
- Table 3: GDP per Capita
- Table 4: Consumer Price Indices of Malaysia, Thailand, South Korea and Taiwan, 2000-2005
- Table 5: Rate of unemployment in Malaysia, Thailand, South Korea and Taiwan, 2000-2005
- Table 6: Population breakdown by age in Malaysia, Thailand, South Korea and Taiwan, 2005
- Table 7: South Korean retail savings and investments, 2000-2005
- Table 8: Onshore liquid wealth owned by individuals in South Korea, 2001-2005
- Table 9: Number of affluent individuals in South Korea, 2001-2005
- Table 10: Onshore liquid wealth owned by individuals in South Korea, 2006-2010
- Table 11: Number of affluent individuals in South Korea, 2006-2010
- Table 12: Wealth markets that have been modelled using the Global Wealth Model
- List of Figures
- Figure 1: Report structure and research model
- Figure 2: A sectoral breakdown of the four economies reveals varying reliance on the services sector, with Taiwan' s economy being the most reliant
- Figure 3: South Korea' s economy grew at the fastest overall rate between 2001 and 2005
- Figure 4: South Korea' s economy is by far the largest of the four and saw good average annual growth over the 2001-2005 period
- Figure 5: All four economies have seen low inflation of consumer prices over the 2000-2005 period
- Figure 6: Of the four countries Malaysia has the youngest population profile
- Figure 7: All four countries have low unemployment on a global scale, with Thailand' s rate the lowest in 2005
- Figure 8: Retail savings and investments growth flattened out in 2003, but the market did not see a major dip as other countries did
- Figure 9: Individuals with between USD60,000 and USD500,000 in investible assets grew to more than 1.6 million in 2005
- Figure 10: The number of high net worth individuals in South Korea dipped in 2003 before growing in 2004 and 2005
- Figure 11: Typical diversified investment portfolio of a Korean individual with more than USD10m, as provided by Korean wealth managers, 2006
- Figure 12: Commercial banks in South Korea fall into three categories, Nationwide Banks, Local Banks and Foreign Bank Branches
- Figure 13: Mass affluent individuals with between USD60,000 and USD500,000 will own 50% of all retail liquid assets in 2010
- Figure 14: The number of individuals with between USD60,000 and USD500,000 in investible assets will grow by more than 30% between 2005 and 2010
- Figure 15: The overall liquid wealth of affluent individuals will grow at a rate of 6.4% compounded annually over the 2005-2010 period, not a great deal fasted than overall retail liquid wealth
