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South Korean asset seek stronger overseas diversification

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Staff writer ▼ | May 19, 2016
South Korean asset management companies have opened more overseas subsidiaries in recent years in a move to diversify their income sources, government data showed.
South Korean bank
Asia   Tax benefits for overseas fund products
The number of domestic asset managers' overseas subsidiaries more than tripled to 25 in 2015 from eight in 2008. That of overseas offices built for local market research rose to nine from six during the same period, according to data from the Financial Supervisory Service (FSS).

"As the government introduced tax benefits for overseas fund products in 2007, domestic asset management firms began to look overseas for business opportunities and tie-ups with foreign partners," an FSS official said.

In 2008, only seven domestic asset managers had overseas operations, but last year, the number climbed to 15. And the number of overseas subsidiaries, outlets and offices moved up to 35 from 14 during the cited period, the FSS said.

Mirae Asset Global Investments Co. looks to be the most aggressive local player in its global push. It currently operates 10 subsidiaries and 2 offices in 11 countries, including the United States, Canada, Hong Kong and China.