Surge in ETF Sales at Major Korean Banks Raises Profit and Risk Awareness
ETF (Exchange-Traded Fund) sales at Korea’s leading commercial banks have soared over 80% year-on-year in 2024, surpassing 37 trillion KRW. Asset management fee income has similarly surged—with a rise exceeding 50%, now totaling 567.3 billion KRW. This robust uptrend is largely driven by increased ETF investments within retirement pension accounts, while banks strive to boost non-interest income by expanding digital services and launching diverse ETF trust offerings.
However, regulators are raising concerns about the risks of misselling related to ETF trusts, advising investors to exercise caution. As ETF sales growth accelerates, investor protection and sales transparency are emerging as critical issues. Korean banks’ push to expand asset management services underscores the need for robust risk management and consumer protection mechanisms in this rapidly developing market.
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ETF sales by the 4 major banks exceed 37 trillion, double last year's total sales - Herald EconomyAs of the 11th of this year, the ETF sales by the four major commercial banks, including KB Kookmin, Shinhan, Hana, and Woori, amounted to 37.0504 trillion won. Since the second half of last year, there has been a rapid inflow of ETF funds, particularly centered around retirement pension accounts.