Intensified Competition in the Domestic ETF Market and Trends of Major Asset Management Firms
The domestic ETF market has expanded to 150 trillion KRW, leading to intensified competition among major asset management firms. Notably, the market share of Samsung Asset Management and Mirae Asset Global Investments has declined, while Korea Investment Management and Shinhan Asset Management have seen significant increases in their market shares. Korea Investment Management's products, such as 'ACE US 30-Year Treasury Active' and 'ACE US Big Tech TOP7 PLUS', gained popularity, raising its market share from 4.89% to 7.11%. Shinhan Asset Management also saw its market share rise from 2.22% to 2.96%, thanks to products like 'SOL Shipbuilding TOP3 PLUS' and 'SOL US Dividend Dow Jones'.
The top four asset management firms (Mirae Asset Global Investments, Samsung Asset Management, Korea Investment Management, and KB Asset Management) account for 96.9% of the domestic exchange-traded fund (ETF) market, reinforcing their dominance. Despite attempts by smaller asset management firms to introduce new theme-based products, they face challenges due to limited capital and manpower. The dominance of the top four firms is particularly evident in the overseas-investment ETF market, making it increasingly difficult for smaller firms to introduce new products.
Mirae Asset Financial Group has been actively supporting ETFs launched by its subsidiary Mirae Asset Global Investments. As of the end of the second quarter, Mirae Asset Financial Group held 2.1511 trillion KRW worth of Tiger ETF products, equivalent to 3.88% of the total net assets of Tiger ETFs. Unlike Samsung Group, Mirae Asset Financial Group primarily invests in non-interest-rate ETFs. In contrast, KB Asset Management has substantial support from its group, warranting close scrutiny from the Financial Supervisory Service, according to lawmaker Kang Hoon-sik.
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