As the number of high-net-worth individuals grows, demand for family offices (FO) is rising in Korea as well, but in Korea family offices have not taken root stably due to double taxation. Because of this, demand for family offices in Korea is showing a trend of moving to Asian financial hubs such as Hong Kong.
According to the 2025 Korea wealth report released by the KB Financial Group Management Research Institute on the 13th, there are 32,000 high-net-worth individuals with 10 billion to 30 billion won in financial assets and 12,000 ultra-high-net-worth individuals with more than 30 billion won. The financial assets held by those with at least 1 billion won in financial assets total 3,066 trillion won, which is 4.5 times the Korean government budget (677 trillion won).
◇ Demand for family offices is high in Korea, but double taxation is a barrier
As the assets of high-net-worth individuals increase rapidly, demand is also growing for family offices that can manage them stably. Depending on how they operate, family offices are divided into single family offices (SFO), in which individuals directly manage funds in forms such as trusts and hedge funds, and multi family offices (FMO), in which brokerages and insurers pool and manage the funds of multiple wealthy individuals.
In Korea, Atnum Partners, established by Chairman Lee Min-joo to manage about 1.5 trillion won in assets after selling the cable broadcaster C&M in 2008 following the company's start as a stuffed toy maker and growth of C&M, is known as the origin of family offices. Nearly 20 years have passed since family offices appeared, but notable examples of new establishments since then are few and far between.
Korea's structure makes it difficult to operate a family office stably. If an ultra-high-net-worth individual establishes a family office to manage funds, corporate tax is first imposed on investment income, and then dividend income tax is applied again when distributing returns, creating a double taxation problem. As a result, the effective return rate of a family office inevitably drops significantly.
◇ Hong Kong absorbs FO demand with a flexible financial environment
Behind the concentration of family office demand in Hong Kong is flexibility in growing and managing assets. Hong Kong borders China and serves as a springboard for entry into China. In neighboring Shenzhen are clustered major companies including Huawei, ZTE and Tencent. The Guangdong–Hong Kong–Macau Greater Bay Area, which brings together Hong Kong, Macau and nine key cities in Guangdong province into one economic sphere, is also boosting Hong Kong's value as a hub. The Northern Metropolis Project, which is developing the entire northern part of Hong Kong into an integrated innovation hub for information technology (IT), industry and universities, is also underway.
Moreover, Hong Kong has a geographical advantage that allows access to major Asian cities within four hours. In this environment, Hong Kong recorded a total of 119 initial public offerings (IPOs) in 2025. Of these, four ranked in the global top 10 by IPO size last year, and total funds raised exceeded $36 billion (about 52 trillion won). Hong Kong is also seeking to join the Regional Comprehensive Economic Partnership (RCEP), putting it on the verge of forming a joint economic bloc with Korea as well as China and Japan.
Robert Buchbauer, vice chairman of Swarovski International Holding, said from the perspective of family offices and corporations that value long-term legacy, "Hong Kong is a city with stability, predictability and a business-friendly environment, which underpins family offices that consider long-term growth." He added, "A culture that values business and an entrepreneurial spirit are also maintained," and said, "These conditions influence how legacy-focused companies seek partnerships and growth opportunities." Asked to describe Hong Kong in one word, he added that it is a "dynamic" city.
In fact, Hong Kong has family office–friendly systems. Under the one country, two systems principle, it maintains a judicial system independent from China, and its immigration, currency, fiscal and tax systems are also operated separately. With no foreign exchange controls, funds can move freely in all major currencies.
Jason Fung, global head overseeing family offices at Invest Hong Kong, said, "Hong Kong has an environment favorable for family offices to run asset management strategies that consider liquidity and agility," adding, "There are also many professionals with a strong understanding of Korean culture, making it possible to advise Korean wealthy individuals on family governance design and business expansion."