Competition among banks for wealth management (WM) is spreading beyond Seoul’s Gangnam district to regional areas. With three out of every ten wealthy individuals holding financial assets of 1 billion won or more residing outside the capital region, banks are rapidly expanding their previously Seoul-concentrated specialized WM branches to major regions such as Busan, Daegu, and Gwangju.
According to the financial sector on the 28th, NH NongHyup Bank is considering opening additional 'NH Royal Chamber' channels for ultra-high-net-worth individuals in Busan and Daegu in the first half of next year. This marks the first expansion of the Royal Chamber, currently operated only at its Seoul Seodaemun headquarters, to regional areas.
The NH Royal Chamber is a premium comprehensive asset management channel that provides investment advisory and tax consulting services such as inheritance and gift planning for customers with financial assets of 1 billion won or more. Although NongHyup Bank had initially considered opening its second Royal Chamber branch in Seoul’s Gangnam area, it has now decided to open the fourth branch after Busan and Daegu.
It appears that NongHyup Bank has formulated a strategy to first target regional wealthy individuals by leveraging its strong regional sales network. The bank already has established WM hubs across the country. Among the 100th 'NH All100 Comprehensive Asset Management Centers' operated nationwide, 39 are located in the capital region and 61 in non-capital regions.
Hana Bank is rapidly expanding its specialized channels targeting elderly and retired customers nationwide. Following the opening of 'Hanadernext Lounge' in Daegu last July, it opened its first lounge in the Chungcheong region in Daejeon on the 17th. It plans to open an additional branch in Gwangju next month and expand its presence to Busan by December.
The background for banks expanding their WM hubs in regional areas lies in the increase of high-net-worth individuals in those regions. According to KB Financial Group’s '2025 Korean Wealth Report', there are an estimated 476,000 wealthy individuals in Korea holding financial assets of 1 billion won or more. Of these, approximately 146,500 people, or 30.8%, reside outside the capital region. The proportion of wealthy individuals in the capital region dropped by 1.2 percentage points (p) from last year’s 70.4% to 69.2%.
Woori Bank has also successively increased its specialized regional branches this year. In July, it opened 'NPS Jeonbuk BIZ Prime Center' in Wanju County, Jeollabuk-do, to support advanced strategic industries in the region while providing services such as asset management, inheritance planning, and retirement pensions for business owners and employees. Earlier in January, it also newly opened 'TWO CHAIRS W (TCW)', a specialized high-net-worth asset management branch in Daegu, and established 'Jeju Global PB Branch' targeting foreign wealthy individuals in Jeju.
Shinhan Bank has been increasing its WM hubs in regional areas from December last year to February this year together with Shinhan Investment Corp. It has newly opened 'Shinhan Premier Communitas Lounge' in non-capital regions such as Wonju, Jeju, Ulsan, and Cheongju, providing asset management services that link banks and securities firms.
The expansion of specialized branches by banks into regional areas aligns with strategies to broaden the revenue base in the asset management sector beyond the traditional deposit-loan margin-focused operations. Particularly from a bank’s perspective, business owners and high-net-worth individuals in regional areas can become target customers for generating various non-interest income streams including investment products, inheritance and gift planning, family business succession, tax services, real estate, and trusts.
A banking sector official stated, "While there is sufficient demand for asset management services in regional areas, channels offering professional services comparable to those in Seoul are relatively scarce." He added, "As banks segment their WM customer base not only among high-net-worth individuals but also business owners and retired customers, we expect continued expansion of specialized hubs tailored to each region."
in FINANCE
