Perspectives on South Korean Overseas Investments
Growing Fund Market
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The fund market is an important avenue for wealth
creation in Korea largely due to the growing volume
of pension fund assets.
While overall fund assets are growing in Korea,
investments into alternatives (real estate & special
assets) have driven much of the growth.
Investments into overseas funds decreased during
the financial crisis but have grown substantially
since.
Fund distribution has largely been driven by the
securities firms, which accounted for 71.3%. Banks
have been the second most active on the
distribution side at 20.0%.
Much like the U.S., demand for ETFs has risen in
Korea. Total AUM of ETF's in 2018 exceeded KRW
41tn, up KRW 5.4tn YOY.
☑
DARC
MATTER
Sources: KOFIA 2019 Annual Review
Exchange Rate: 1 USD = 1,180 South Korean Won
Fund AUM
Investment by Fund Type
[KRW tn)
Privately placed funds
600
Publicly offered funds
500
(KRW tn)
Equity
Derivatives
Special assets
Bond
Real estate
MMF
Fund of funds
600
Hybrid assets
400
300
3,332,194
2,859,726
2,497,028
550
500
450
400
350
300
2,177785
250
2,112,188
200
0
2012
2013
2014
2015
2016
2,196 120
150
2017
2018
100
50
0
2014
2015
2016
2017
2018
200
100
2005 2006 2007 2008 2009 2010 2013
AUM of Overseas Investment Funds
[KRW 100bn]
1,600
1,400
1,200
1,000
770
800
730
732
638
600
400
197
200
0
567 579 581
Distribution by Institution Type
(%)
1,495
100
1,234
80
940
60
740
627
40
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
20
0
Securities companies
Insurance companies
Banks
Others
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
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