Interview with Kim Kyung-tae, CEO of the Fractional Investment Platform 'Treasurer'
"Objective valuation is essential for popularizing fractional investment”
Treasurer Secures Series A Investment from Dunamis Asset Management this April
[By Kim Yeon-ji, Economist Market-in] Kim, a resident of Seoul, unexpectedly met a Hong Kong millionaire, an alternative investment expert. Learning that the Hong Konger invested in wine bottles priced at KRW 20 millioneach, Kim skeptically thought, "It's just WINE," yet decided to experience alternative investing himself by purchasing half a bottle worth approximately at KRW 10 million.
A few months later, Kim successfully sold the invested wine for more than double its purchase price because the wine's rarity increased due to the deteriorating health of the winery's owner, creating a buzz in the market.
This incident from 2020 is an anecdote shared by Kim Kyung-tae, the CEO of 'Treasurer', a local platform offering fractional investments based on collectibles. Treasurer allows anyone to invest, starting from KRW 1,000 (approximately $1), by breaking down high-value items—such as luxury watches, fine wines, and branded bags—into fractional shares.
Kim Kyung-tae, CEO of the Fractional Investment Platform 'Treasurer'
Meeting Kim Kyung-tae face-to-face, at his office in Sinsa-dong, Seoul, he emphasized that fractional investing provides a gateway for smaller investors to dabble in high-end assets. “It's gaining traction” he says, “especially among the MZ generation”.
Kim pointed out that fractional investments make up a significant portion of global magnates' portfolios. "According to the Wells Report, amidst financial market uncertainties, global magnates are diversifying their portfolios, with alternative investments constituting around 5%. Among these, collectibles account for a quarter. They view these alternative investments not as indulgences but as genuine investments."
The idea behind Treasurer was to make such collectible-based alternative investments accessible to mass, not just for the top layers. Kim says, "The younger generation tends to express themselves through collectibles rather than real estate or art. Our goal with Treasurer is to make it easier for everyone, especially the upcoming MZ generation, to invest in what they're passionate about." The platform has amassed over 400,000 users within just two years of its launch, with a diverse age distribution.
Treasurer's investment approach is simple: they buy rare collectibles, divide the ownership into shares, and offer these fractions to individual investors. Users can invest with as little as KRW 1,000. If the item's value goes up and is sold at a higher price, investors get back their initial investment amount with additional profit portion. For those daunted by the idea of buying expensive items outright, it's a perfect substitute. As for risks, Kim assured that they partnered with domestic and international insurance and trust companies for safe management.
Given the rapid user influx, domestic investors have also taken notice of Treasurer. After securing initial investments from DT Investment and Coinone, they recently aquired a Series A investment from Dunamis Asset Management.
When asked about the peculiarity about Treasurer among many fractional investment platforms, Kim emphasized its global scalability and technical prowess. "While the value of real estate or art can be subjective and inaccessible to the average person, luxury collectibles are different. They have universal appeal and value, allowing us to approach both local and global targets."
Their technological capabilities is also playing a significant role in securing investments. "We monitor global prices for specific collectibles using our in-house AI-based crawling engine. This allows us to provide price accuracy and consumer trends," shares Kim. Based on these raw data, Treasurer offers various reports to help users grasp current trends.
Their capabilities have also led to collaborations with securities companies. Recently, Treasurer entered a Memorandum of Understanding (MOU) with Mirae Asset Securities Company. The collaboration will explore securitizing valuable collectibles and leveraging Security Token Offerings (STOs) – tokenizing real or financial assets on the blockchain – to offer diverse products within the regulated space.
Kim envisions a future where "Treasurer will lower the barrier of entry for fractional investing, allowing it to be more flexibly adopted through STOs." He also revealed they are currently working on a "fraction sharing" feature where users can share fractional shares to thier acquaintance.
