Korean asset managers are being nudged towards setting up shop in emerging Asia – witness a recent CEO delegation to Vietnam – but they first need to make changes at home.
The Financial Services Commission says it will approve a licence for an online funds supermarket as soon as possible, to be fully operational by March. The aim is to cut costs and create a competitive distribution landscape.
Investors, consultants, insurers and government officials mingled at AsianInvestor’s 7th annual Korea Institutional Investment Forum in Seoul on July 11. Here we present a photo gallery.
Industry firms stump up nearly $20 million in seed capital in order to finance a state-backed online venture meant to reduce traditional distributors’ stranglehold.
The Korean trade association will seek help from global consultants to build a funds supermarket online. It aims to foster competition for foreign-owned firms and drive down distribution costs.
The Korean financial industry association is putting together ideas to present to regulators and ministries in a bid to promote investments into long-term vehicles.
Korea’s self-regulatory organisation believes mutual funds need to be put on a long-term footing, which means more access to tuition savings and pension money, says MD Kim Cheol-bae.
Cosmo IM is expected to receive a licence to manage equity, fixed-income and money-market funds. Rumours also persist that it is poised to become majority owned by Lotte Group.
A sharp rise in the number of new investment advisory companies in Korea is causing some to worry that the increased competition will harm the industry.
The industry is expected to double in size by the end of this year amid a continued relaxation of rules by the government, according to the Korea Financial Investment Association.
The Financial Supervisory Commission has approved rules that make it easier for fund-management companies to close unprofitable funds, but distributors must be appeased.
The Korean funds industry is concerned about risk as institutional and retail money-market inflows top $86 billion.