American International Group Inc. plans to start a private banking operation in South Korea to tap into a money management market it says is underdeveloped compared with those of other Asian countries.
South Korea has about 170,000 rich individuals with some $142 billion to invest, and only four of the 30 major private banks are in this market, Eduardo Leemann, the chief executive of AIG Private Bank Ltd., said in an interview Tuesday at a Euroforum conference in Zurich.
"For a niche player like us, you have to pick your markets opportunistically,'' he said.
Citing research by Datamonitor, he said South Korea stands in contrast to Taiwan, where 190,000 wealthy people have $164 billion and are served by eight private banks, or Hong Kong, where 27 banks serve 320,000 rich individuals with a combined $308 billion to invest. He said he plans to enter South Korea by teaming up with a local bank that can help with distribution.
AIG Private Bank, based in Switzerland, has $12.6 billion of assets under management; its Asian offices are in Hong Kong, Singapore, and Shanghai.
