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Photo = FSS |
[Alpha Biz= Paul Lee] The Financial Supervisory Service (FSS) will begin on-site inspections of major South Korean asset management firms starting mid-May, according to sources in the financial authorities and investment industry on April 29.
Over the course of a month, the FSS will conduct unscheduled inspections of leading firms including Samsung Asset Management, Mirae Asset Global Investments, Korea Investment Management, KB Asset Management, Shinhan Asset Management, and Kiwoom Asset Management.
The inspections are expected to focus broadly on issues related to exchange-traded funds (ETFs), which have recently come under scrutiny. These include errors in the real-time indicative net asset value (iNAV) calculations, which led to ETFs being overvalued during trading. Other concerns involve aggressive fee-cutting among major firms and controversy over reduced dividend payouts by Mirae Asset.
Earlier this month, FSS Governor Lee Bok-hyun issued a strong warning to asset management CEOs during a meeting, expressing concerns over firms focusing solely on "noise marketing" rather than sound product management.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
