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Photo = FSS |
[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) has initiated an investigation into allegations surrounding the sales practices of exchange-traded funds (ETFs) involving four asset management firms, including Samsung Asset Management. The inquiry will examine whether there have been any irregularities in the rapidly expanding ETF market, now valued at 150 trillion won.
As of the 13th, the FSS has begun written surveys targeting Samsung Asset Management, Mirae Asset Global Investments, KB Asset Management, and Korea Investment Management.
Recent concerns in the ETF market include accusations of unsound business practices by affiliated entities, such as monopolizing ETF volumes and inducing sales firms to promote their own asset management products.
On July 25, during a National Assembly Financial Committee meeting, suspicions were raised that banks and securities firms were prioritizing the sale of ETFs from affiliated asset management companies. Allegations also include preferential treatment of financial affiliates.
For instance, according to data from Representative Kang Hoon-sik's office, as of March this year, Samsung-affiliated entities held substantial amounts in Samsung Asset Management's interest rate products, such as 'KODEX CD Rate Active' and 'KODEX KOFR Rate Active,' totaling 2.94 trillion won. This accounts for 16% of the fund's net assets of 13.72 trillion won.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
