[2021 Asia Fund Awards] Kim Do-in, Deputy Governor of FSC, "Accelerating Structural Transition of Next-Generation Industries... Thorough Preparation with Expertise and Fiduciary Duty"

Congratulatory Speech by Kim Doin, Deputy Governor of the Financial Supervisory Service

[Asia Economy Reporter Ji-hwan Park] I sincerely congratulate the holding of the '12th Asia Fund Awards' ceremony and thank everyone for inviting me to this meaningful event. The 'Asia Fund Awards' is a significant event that selects and honors asset management companies and distributors who have contributed to fostering a long-term investment culture and the sound development of the asset management industry. I sincerely applaud the passion and hard work you have shown to receive this honor, and I hope that through this event, the asset management industry will develop further both quantitatively and qualitatively.

As of the end of last year, the assets under management in the domestic asset management industry reached 1,198 trillion KRW, with the number of asset management companies totaling 326, showing a continuous upward trend. Among these, overseas fund assets amounted to 280 trillion KRW, and alternative investment funds such as real estate and special assets reached 222 trillion KRW, diversifying both investment regions and targets.

However, the proportion of individual investors' fund investments in the domestic asset management industry has been steadily decreasing, and the size of public funds relative to the gross domestic product (GDP) is less than half that of major advanced countries, indicating a weak demand base. To address these challenges, the most necessary factor is to build a firm 'trust' that funds manage investors' assets based on expertise.

Currently, structural transitions to next-generation industries such as low carbon and healthcare are accelerating worldwide. Investment behaviors are also changing, such as investor herd behavior through social media, as seen in the GameStop case. The important question is how to respond to these changes. It is a time when investors facing unprecedented changes urgently need financial market sherpas to guide them with a long-term perspective and help them respond appropriately to changes.

Opportunities will come to asset management companies and distributors that are thoroughly prepared based on expertise and fiduciary duty. Please keep a close watch on upcoming changes and potential risks, and pioneer new markets with a consistent investment philosophy and systematic systems in place.

This content was produced with the assistance of AI translation services.