As volatility in domestic and international financial markets increases, banks are becoming more cautious with their investment product sales. Employees at branches are currently recommending asset allocation or a temporary wait instead of actively promoting investment products to customers. Bank private bankers (PBs) are united in saying that, as the market moves unpredictably, it is time to divide investment opportunities rather than engage in bold investments.
According to the financial sector on the 9th, KB Kookmin Bank has recently begun recommending asset allocation funds while reducing the proportion of U.S. stocks for asset management clients. Additionally, they advised investors with an aggressive orientation to decrease their investment in growth stocks among U.S. stocks. Growth stocks are considered investment opportunities with expected future profit increases, but they have the disadvantage of being vulnerable to external variables such as economic conditions. The reason for discouraging investment in U.S. growth stocks is that they reacted sensitively to President Donald Trump's policy of reciprocal tariffs and its announcement of a postponement, which increased price fluctuations.
Other banks are also changing their investment product sales methods considering market conditions. Hana Bank is recommending loss defense through partitioning purchases to its customers. Woori Bank has shifted its recommended product portfolio from foreign equity products to domestic and foreign bond-related funds. Shinhan Bank is currently explaining the current market situation to customers before consultations and is noting that investment risks have increased. Some bank PBs are reported to be recommending a wait-and-see approach instead of investment during asset management consultations with customers.
The reason banks have become cautious in their investment product sales is to prevent customer asset losses and consumer disputes due to the recent increase in market volatility. On the 3rd, based on Korean time, President Trump announced that he would impose reciprocal tariffs exceeding the basic tariff rate (10%) on over 60 countries. A week later, on the 10th, President Trump suddenly changed his policy by stating that the reciprocal tariffs on countries other than China would be postponed for 90 days.
For a week, domestic and international markets fluctuated dramatically with a single word from President Trump. On the 9th, the domestic KOSPI index fell below 2300 for the first time in a year and five months as reciprocal tariffs came into effect. Immediately the next day, when the tariff postponement was announced, there was a surge in buying, and a trading halt (sidecar) was triggered in the securities and KOSDAQ markets. The three major indices of the New York Stock Exchange fell by 4–6% after the tariff announcement, then rebounded by 8–12% immediately after the postponement decision.
Although investment sentiment is recovering after President Trump's surprising announcement to postpone tariffs, banks are maintaining a cautious stance. This is because the market, influenced by political dynamics, can experience shocks that are difficult to predict through economic logic at any time. Banks also see that unforeseen variables may arise even during the 90-day period of tariff postponement. Considering this, banks plan to encourage investments centered around asset allocation for some time.
Kim Yuna, the branch manager of KB Kookmin Bank GOLD&WISE the FIRST center, emphasized, "In an environment of high market volatility, it is important to maintain a calm mindset." Manager Kim noted, "It can be risky to think of it as an opportunity for hasty bottom buying," and advised that engaging in extreme investments based on the current asset value is risky.