ETF Market Competition and Regulatory Strengthening
The Financial Supervisory Service is intensifying its scrutiny of the asset management industry in South Korea. Initially sparked by competition over ETF fees, this investigation has expanded to encompass the comprehensive examination of internal controls within the asset management sector. Major asset management firms have been asked to submit ETF trading data, with a particular focus on verifying regulatory compliance.
Competition between Samsung Asset Management and Mirae Asset Global Investments is also intensifying. They are clashing fiercely in the retirement fund robo-advisor (RA) service arena, with each firm attempting to establish its niche. Samsung has collaborated with Qraft Technologies, while Mirae Asset has launched its proprietary 'M-Robo' service, both aiming to enhance their positions in the ETF market.
Mirae Asset has experienced some stagnation in the ETF market. As of September 15, its net asset value stands at 62.4021 trillion won, with a market share of 33.78%, widening the gap with Samsung Asset Management. In contrast, Samsung's net assets have grown to 72.0857 trillion won, increasing its market share to 39.02%. The downturn in the U.S. stock market has adversely affected Mirae Asset's performance, and reductions in some ETFs' dividends have been highlighted as factors threatening investor confidence.
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