"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 more attention to the flow of money than to 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 Ahn and Dae Su Kim, Senior Advisors at Shinhan Premier Pathfinder, made this statement at the "Shinhan Premier Pathfinder Insight 2026" event held at Dragon City Hotel in Yongsan, Seoul, on August 31. The event marked the first joint wealth management forum by Shinhan Financial Group, with participation from the bank, securities, card, insurance, and asset management divisions.

The two advisors outlined the distinct characteristics of the wealthy in a seminar titled "2026 Korea Wealth Trend." Ahn explained, "Previously, wealthy individuals would ask 'Which stock or product is good?' Nowadays, they focus more on 'Where is the money flowing to, and where might it flow in the future?'" He further remarked, "Rather than trying to pick currently rising stocks or products, people are increasingly concerned about why funds are moving, and how these flows impact their own assets. The scope of their considerations is expanding."

They specifically analyzed that wealthy individuals, unlike regular investors, consistently keep a portion of their portfolio in long-term assets. Kim noted, "Even if assets viewed favorably for the long-term show short-term fluctuations, the wealthy do not react emotionally." He continued, "Although U.S. treasury yields are unfavorable at over 5%, some still buy them, saying 'Would America really fail?' In addition, many ensure that 10% to 30% of their personal assets are always held in dollars or gold."

Another notable trait of the wealthy is that they place greater importance on 'after-tax profit'—the gains remaining after taxes and other related costs—than on simple expected returns. Ahn stated, "When choosing financial products, asset owners think about which type of account to use; then, considering the nature of the income—interest, dividends, or capital gains—they review the tax implications. Furthermore, they factor in gifts and inheritance for long-term investment decisions. The larger the asset size, the more significant a one percent increase in after-tax returns becomes compared with a one percent increase in gross returns."

The advisors also recommended that, as of the third quarter of this year, wealthy investors structure their portfolios with around 30% in stocks, 20% in bonds, 40% in alternative assets, and 10% in liquidity. Alternative assets refer to those other than stocks and bonds, including long-short funds, gold, dollar-denominated insurance, equity-linked securities (ELS), and equity-linked bonds (ELB), among others. Kim added, "The wealthy are highly adept at utilizing the alternative asset space and possess a deep understanding of it. These assets allow them to hedge risks that cannot be hedged with only stocks and bonds."

Another trait observed among the wealthy is "not getting off a running horse." Kim elaborated, "Even when stocks rise significantly, they do not sell off all their stock investments but realize profits only on a portion. By staying on the running horse, they naturally become long-term investors and practice portfolio diversification by reallocating some profits into other assets."

Finally, they defined the wealthy as "people who know their own portfolio well." The advisors emphasized, "The wealthy have a clear understanding of why they purchased a particular asset, what proportion it represents in their holdings, and how long they intend to keep it. Before considering new stocks or products, they always review their existing portfolio."

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