"The Wealthy Watch Cash Flow"...Wealth Trends for 2026

Shinhan Financial's Joint Wealth Management Forum Held on August 31

Importance of "Staying on the Running Horse"

Advice: "Thorough Understanding of One's Own Portfolio Is Essential"

"The wealthy pay attention to the flow of money rather than just returns."

Sung Ho Ahn and Dae Su Kim, Shinhan Premier Pathfinder Senior Advisors, explained the "2026 Korea Wealth Trend" at the "Shinhan Premier Pathfinder Insight 2026" event held at Dragon City Hotel in Yongsan, Seoul, on the 31st of last month.

Sung Ho An and Daesu Kim, Senior Advisors of Shinhan Premier Pathfinder, shared this insight at the 'Shinhan Premier Pathfinder Insight 2026' event held at Dragon City Hotel in Yongsan, Seoul, on August 31. The event was Shinhan Financial Group’s first-ever joint asset management forum, involving participation from the bank, securities, card, insurance, and asset management divisions.

The two advisors outlined the characteristics of wealthy individuals in a seminar titled "2026 Korean Wealth Trend." Advisor An explained, "In the past, the wealthy would ask which stocks or products were good to buy. Nowadays, they focus more on where the flow of money is headed and where it may move in the future. Rather than simply guessing which stocks or products will rise, their consideration has broadened to questions such as why capital is moving and how these flows might impact their own assets."

In particular, they pointed out that wealthy individuals always maintain assets to hold for the long term, which sets them apart from ordinary investors. Advisor Kim stated, "Even if there is short-term volatility in assets they favor for the long term, they do not overreact. For example, even though U.S. Treasury yields are hovering around 5% and are not favorable, they may still decide to purchase, reasoning that ‘The United States won't collapse.’ In addition to this, they make sure to hold 10% to 30% of their personal assets in dollars or gold."

Another typical trait of wealthy individuals is that they value 'after-tax profit,' which is income left after deducting taxes and all other expenses, more than just expected returns. According to Advisor An, "Affluent individuals consider which account to use when selecting a financial product, and then analyze whether income generated from the product is interest income, dividend income, or capital gains income—each with different tax implications. They also take a long-term perspective, factoring in gifting and inheritance before making investment decisions. The larger one’s assets become, the more significant a 1% after-tax return is compared to a mere 1% yield," he emphasized.

The two advisors recommended, as of the third quarter of this year, that wealthy individuals allocate their portfolios with approximately 30% in equities, 20% in bonds, 40% in alternative assets, and 10% in liquidity. Alternative assets refer to investments other than stocks and bonds, such as long-short funds, gold, dollar insurance policies, as well as equity-linked securities (ELS) and equity-linked bonds (ELB). Advisor Kim explained, "The wealthy make highly effective use of alternative assets and have a sophisticated understanding of this space. That’s because risks that can’t be hedged through stocks and bonds alone can be managed through these alternative assets."

Another characteristic of the wealthy, as observed by the two advisors, is that "they do not get off a running horse." Advisor Kim stated, "Even when stocks rise considerably, they don’t liquidate all their equity holdings; instead, they only realize gains from a portion. By staying on the running horse, so to speak, they naturally become long-term investors, and by relocating some profit assets into other asset classes, they achieve diversification."

Finally, the advisors emphasized that truly wealthy individuals are those who "know their portfolio inside and out." They advised, "Before considering new stocks or products, you must thoroughly review your existing portfolio. The wealthy have a clear understanding of why they purchased certain assets, what proportion they represent, and how long they plan to hold each one."

This content was produced with the assistance of AI translation services.