Woori Bank private banking balances personalised wealth management and strategic growth

Woori Bank’s Two Chairs private banking brand is arguably one of the most unique and iconic in South Korea’s wealth management landscape. Established in 2003, Two Chairs signifies the close relationship between the private banker and the client, the two engage in a highly personalised consultation—symbolised by the two chairs in the brand’s name.

With a focus on delivering highly customised services to ultra-high-net-worth (UHNW) clients, Song Hyun-Ju, executive vice president and head of Woori Bank’s asset management group responsible for the private banking division, believes Two Chairs has built a reputation for personalised wealth management that focuses on traditional investment asset allocation and long-term family wealth planning. 

Woori Bank also emphasises in-depth client engagement and insights. She explained, “We focus solely on our customers and prove ourselves through results,” underscoring the bank’s commitment to trust and expertise.

The bank invests heavily in training and expanding its private banking workforce while growing its domestic and international presence. However, the bank, like its industry peers, faces regulatory challenges that limit its ability to offer alternative investment products such as private equity (PE) and venture capital (VC). 

Despite these regulatory constraints, Woori Bank remains committed to providing tailored solutions to UHNW clients.

Personalisation at the core of asset allocation

Woori Bank focuses on tailoring its asset allocation services to meet the diverse needs of its UHNW clients. In 2023, the bank reported impressive results, with KRW 2.52 trillion ($1.91 billion) in fund sales, KRW 2.39 trillion ($1.82 billion) in bancassurance, and KRW 5.51 trillion ($4.19 billion) in trusts. This success is attributed to the bank’s emphasis on collaboration between portfolio managers and private bankers to develop customised solutions. Song explained, “We work together to come up with the best solutions… we are not only looking into their financial status but also understanding their depth of life”.

A key pillar of Woori Bank’s strategy is real estate, an asset class highly favoured by UHNW clients seeking stable, long-term investments. Woori Bank leverages its global network to provide clients with access to international real estate opportunities, further enhancing portfolio diversification.

Song stressed that Woori Bank’s approach is centred on understanding the personal and financial aspirations of each client. The bank conducts regular financial reviews every three to six months, ensuring that the portfolios remain aligned with evolving client goals.

In 2023, the bank garnered KRW 86.51 trillion ($65.7 billion) in deposits and other assets under management (AUM) across its private banking and wealth management division, with growth of KRW 1.75 trillion ($1.33 billion) in deposits, and KRW 1.05 trillion ($798 million) in trusts. This stems from the bank’s ability to deliver custom asset management plans, including traditional and real estate investments, which remain highly favoured by UHNW clients.

Client engagement through personal expertise

In addition to bespoke portfolio solutions, Woori Bank’s high-touch service model centres on personal client interactions. Song highlighted that many of the bank’s UHNW clients prefer face-to-face consultations for sensitive matters, particularly succession planning. This personal approach is complemented by exclusive very important person (VIP) seminars on topics ranging from real estate to art, offering both educational and personalised experiences.

The bank’s Two Chairs W (Wealth) Centres further enhance client engagement by providing private, confidential settings for consultations. These centres play a critical role in strengthening long-term relationships with clients, many of whom value expertise and privacy over digital convenience.

Role of private bankers and training

Song attributed much of the bank’s achievements in private banking to its well-trained private bankers. Currently, the bank employs 600 private bankers and has ambitious plans to grow this number to 1,000 in the coming years. To become a private banker at Woori Bank, candidates must have seven to eight years of prior experience in financial services and must complete ongoing training programmes. 

These programmes, conducted in partnership with leading universities, such as the Private Wealth Management programme by Wharton Executive Education - part of the famed business school, focus on technical skills, estate planning, tax optimisation, and understanding client psychology.

Song highlighted that private bankers are not just financial advisors but trusted partners to their clients. “Our private bankers go beyond financial advice; they build relationships that span generations,” she said. Woori Bank’s career development programme (CDP) nurtures young talent, ensuring a steady pipeline of skilled private bankers who can eventually transition into management roles within the organisation.

Woori Bank maintains low client-to-private banker ratios, especially for UHNW clients, to ensure that each client receives a high level of personalised service. On average, a private banker manages around 20 UHNW clients, allowing them to focus deeply on each relationship. This high-touch service model is further enhanced by the bank’s Two Chairs W Centres, which offer exclusive and private environments for consultations.

As part of its expansion strategy, Woori Bank plans to open 20 more of these specialised private banking centres by 2026, targeting clients with assets exceeding KRW 3 billion ($2.28 million). This physical expansion, combined with the growth of the private banker workforce, underpins Woori Bank’s commitment to delivering best-in-class private banking services.

Family wealth management and succession planning

Family wealth management has also become a cornerstone of Woori Bank’s private banking services. Through its Two Chairs W Centres, the bank provides UHNW clients with tailored solutions to ensure smooth multigenerational wealth transfer and tax optimisation. Song emphasised the bank’s role as a “lifetime partner for our clients,” offering a holistic approach that integrates both personal and business financial needs.

Family wealth management services focus on long-term asset preservation and multigenerational wealth transfers. Through the specialised private banking and wealth management centres, the bank offers a broad range of family office solutions, supported by the Consulting T.H.E. Dream Team, which comprises specialists in tax, legal, trust, real estate and asset management. 

It works closely with clients to provide specialised advice to navigate the complexities of estate planning and business succession, ensuring that their wealth is preserved for future generations. Song emphasised that Woori Bank’s role is to ensure that family legacies are preserved and smoothly passed down to future generations.

Philanthropic solutions with "Love Trust"

To further support family wealth planning, Woori Bank offers the Love Trust, which helps UHNW families that seek to direct their philanthropic focus on dependents with disabilities or charitable organisations that serve the disabled community, and to receive tax advantages at the same time. 

This trust provides a mechanism for combining the transfer of assets with tax credit benefits. “This trust comes with tax benefits when bequeathing assets to a disabled person,” explained Song. This product is one of many specialised services offered by Woori Bank to address the unique needs of its clients. Although the "Love Trust" addresses specific philanthropic needs, it is a relatively small part of Woori Bank’s broader wealth management strategy, focusing on clients seeking both social responsibility and financial planning solutions. 

Challenges in offering alternative assets

While Woori Bank has thrived in traditional wealth management services, it, together with the wider industry, faces significant regulatory hurdles in offering alternative investments such as PE, VC and crypto or digital assets, including barriers around capital-raising and reporting requirements, that have slowed the adoption of these products. The strict regulatory environment also restricts banks’ ability to fully meet client demand for higher-risk, higher-return investments.

Song acknowledged there is strong interest from clients in alternative investments, but the bank has to wait for regulatory changes before expanding these offerings. She noted, “At this moment, we don’t provide alternative investment products like PE and VC… but we are preparing for these products in collaboration with Woori Securities. While demand for alternative investments grows globally, Woori Bank remains focused on traditional asset classes like securities, funds and real estate until the regulatory environment becomes more favourable for such products.

Operational risk and compliance

In addition to managing regulatory constraints, Woori Bank places a strong emphasis on compliance and operational risk management. Song stressed that the bank adheres to stringent corporate governance standards, such as a strict separation between sales and operational functions, and a zero tolerant - “one strike and out” - stance on compliance lapses, to safeguard against breaches of contracts or financial mismanagement, which are critical in avoiding regulatory penalties and longer-term reputational damages.

This risk management strategy not only protects the bank but also ensures that clients’ assets are managed in accordance with local regulations. Woori Bank’s dedication to compliance helps maintain its reputation for reliability and trust within South Korea’s private banking sector, said Song.

Meeting the growing demand for ESG and responsible investments

Woori Bank has increasingly integrated environmental, social, and governance (ESG) principles into its wealth management services. Song highlighted that many UHNW clients are prioritising sustainable investments, stating, “ESG is becoming a priority for many of our clients, especially those looking to align their investments with their values”.

While ESG-aligned products meet the ethical needs of clients, balancing these investments with financial returns remains a key challenge. As Woori Bank continues to develop its ESG offerings, it must ensure that these products deliver both competitive performance and measurable social impact.

Domestic growth and global aspirations

The bank is also expanding the private banking business both domestically and internationally, catering to the growing demands of UHNW clients while balancing regulatory constraints and strategic growth.

The bank has successfully grown its presence domestically through its Two Chairs brand, which continues to attract UHNW individuals from amongst its wealth management customer base seeking personalised wealth management.

By the end of 2023, Woori Bank’s wealth management business serves over 286,000 clients, a yearly increase of 18,304 clients, including more than 2,000 who hold assets exceeding KRW 1 billion ($760,000), 1,597 with deposits exceeding KRW 500 million ($380,000) and 2,272 with deposits over KRW 300 million ($228,000). Most of whom were acquired through various programmes such as customer referrals and exclusive benefits, such as VIP seminars and preferential rates on time deposits.

Internationally, Woori Bank is in the early stages of expanding its private banking services. The bank has established partnerships and memorandums of understanding (MOUs) with financial institutions in markets like Singapore and New York, providing advisory services to clients looking for overseas investment opportunities. This expansion aligns with the global trend of UHNW clients seeking more diversified, cross-border investment portfolios.

Navigating complexities in private banking

Song remarked that Woori Bank’s Two Chairs brand remains focused on offering tailored and high-touch private banking services that cater to the evolving needs of UHNW clients. Its expertise in real estate, family wealth management, and succession planning positions it as a trusted partner for clients seeking long-term financial security.

However, like its peers, Woori Bank faces significant regulatory constraints that limit its ability to offer alternative investment products. While the bank is preparing for these opportunities, its focus remains on traditional assets. Additionally, Woori Bank’s strong emphasis on compliance and operational risk management ensures that it navigates these challenges while safeguarding both client assets and its reputation.

As the market for ESG investments grows, Woori Bank will need to balance these ethical priorities with the financial expectations of its clients. By continuing to adapt to regulatory changes and client demands, Woori Bank remains well-positioned to thrive in South Korea’s dynamic private banking landscape.