Goldman Sach Asset Management’s recent exit from South Korea illustrates the problems global asset managers face in trying to build a viable presence in the country. The dearth of domestic investment platforms and limited sales opportunities are proving a real stumbling block, experts say.
Eight of the 22 foreign asset managers active in South Korea suffered losses in the final quarter of last year. There is fierce competition over fees, with 84 fund management companies jostling for a bigger share of Asia’s third-largest funds market – a market dominated by local heavyweights that include Samsung Asset Management and Mirae Asset.
But while foreign managers have suffered, the large domestic players, which include KB Asset Management and Korea Investment Management, made millions of dollars in profits during the final three months of last year, despite challenging market conditions.