Family offices around the world are evolving to meet the expectations of ultra-high-net-worth individuals, but Korea remains at the starting line. Through on-the-ground reporting in Singapore, which has risen as the hub of Asian family offices, we examine the limits and challenges of Korea's wealth management market. In particular, we analyze Singapore's strategy of attracting global capital through deregulation and tax reform, and seek practical solutions for Korea's financial industry to advance into a sophisticated wealth management market. [Editor's note]
As the family office (Family Office, hereafter FO) market in the Asia-Pacific region expands rapidly, Singapore is emerging as a dominant base. According to the Monetary Authority of Singapore (MAS), about 2,000 FOs were registered locally as of the end of last year, a fivefold surge in five years compared with 2020 (400).
The roots of FOs trace back more than 200 years to Europe's eminent financial house, the Rothschild family. The "steward" system, employed to systematically manage the family's wealth, is considered the origin of today's FO. Later, as the Rockefeller family, an American oil tycoon dynasty, formalized a wealth management organization, it took hold as a modern financial services model.
Deloitte Touche Tohmatsu Limited (DTTL) projects that as of 2024 there are about 8,030 FOs worldwide, and the number will surpass 10,000 by 2030. Their assets under management (AUM) total about 8,000 trillion won. Market research firm Mordor Intelligence analyzed that the global population of ultra-high-net-worth individuals (UHNWI) with a net worth of $30 million (about 4.29 billion won) or more exceeded 510,000 last year. In particular, they allocate about 45% of their total assets to alternative investments, building aggressive portfolios.
Family offices are largely divided into single family offices (SFOs), which exclusively handle a specific family's assets, and multi-family offices (MFOs), which manage the assets of multiple families together.
An SFO is an organization dedicated to a specific wealthy family, with strengths in customized strategy development and tight control. However, because fixed expenses such as operations, personnel, and legal affairs are high, experts say it is generally only practical when asset size is at least 300 billion won. By contrast, an MFO jointly manages the assets of multiple wealthy clients and can share costs, offering greater efficiency. Instead, there are limits to crafting strategies optimized for each individual family.
Korean financial firms are also eyeing the growth potential of the family office market. Large securities firms and banks are mainly expanding services starting with the MFO model. With the goal of providing advanced wealth management solutions for private banking (PB) clients, they are strengthening services through collaboration with tax and legal experts or by leveraging overseas bases. Some financial companies are also moving to offer consulting and investment platforms to help establish single family offices.
The biggest reason Singapore is chosen by the wealthy is its stable regulatory environment and open financial infrastructure. Beyond simply holding assets, the environment is set up to provide integrated support for asset management, inheritance and succession, tax and legal advice, and governance management. Its credibility as a financial hub in Asia also plays a key role in attracting wealthy clients.
Active government policy is also contributing. Singapore's top personal income tax rate is 24%, and its single corporate tax rate is 17%, meaning the tax burden is lower than in Korea (49.5% and 26.4%). Family office funds that meet certain requirements are exempt from corporate tax on income such as interest and dividends generated through designated investments (DI). The absence of inheritance and gift tax is the most attractive element for the wealthy.
In return for offering bold tax benefits, Singapore requires a certain level of employment and investment. Generally, to receive incentives such as tax reductions, assets under management must be at least 20 million Singapore dollars (SGD, about 22.6 billion won), and two to three investment professionals must be hired. In addition, at least 10% of AUM or 10 million SGD (about 11.3 billion won) must be invested in Singapore-based assets. This is designed to create a virtuous cycle so that attracting family offices leads to tangible local economic development.
Last year, the Singapore government revamped its incentive regime, focusing on single family offices. The core changes include simplifying application documents, easing reporting obligations, shortening approval times, and expanding the scope of eligible investments. The processing time for tax incentives was also shortened to about three months. The government is actively supporting training programs to cultivate professionals in asset management.
These efforts are also evident in the data. According to "World's wealthiest 50 cities 2025," released by British investment migration consultancy Henley & Partners, Singapore has 242,400 wealthy individuals with assets of $1 million (about 1.4 billion won) or more, up 62% from 10 years ago. Over the same period, New York rose 45%, while London fell 12% due to the impact of Brexit. Hong Kong's growth rate was just 3%.
The weakening status of Hong Kong, which has been a pillar of the Asian wealth management (WM) market, also underpins Singapore's rise. Since the 2020s, as China's influence has expanded and the National Security Act and stringent quarantine policies have been implemented, institutional uncertainty has grown. As a result, global wealthy individuals began to transfer their assets and bases to the relatively stable Singapore.
In fact, Zhang Yong, founder of Chinese dining corporation Haidilao, acquired Singaporean citizenship with his wife in 2018 and set up a family office. James Dyson, founder of British home appliance company Dyson, also operates a family office. Jim Rogers, regarded as one of the world's three great investors along with Warren Buffett and George Soros, moved to Singapore with his family in 2007.
This influx of global wealthy individuals into Singapore cannot be explained by tax savings alone. It is the result of intertwined factors including stable institutions and predictable regulation, excellent financial infrastructure, and a strong talent pool. Building an "ecosystem of trust" that allows the wealthy to entrust their wealth with confidence is the driving force that made Singapore Asia's asset management hub.
Mordor Intelligence said, "The Asia-Pacific is the world's No. 2 market by asset size and is emerging as a center of growth driven by a young ultra-high-net-worth base and active establishment of new family offices centered on Singapore."