Kim Donghoe "Active Investment 'Money Rush' Era, Creating a Healthy Asset Growth Environment"

2022 Asia Fund Awards
Congratulatory Speech by Kim Donghoe, Deputy Governor of Financial Supervisory Service

Kim Donghoe, Vice Chairman of the Financial Supervisory Service.

Now in its 13th year, the "Asia Fund Awards" has contributed to the development of the asset management industry by recognizing outstanding funds, asset management companies, and distributors. We hope that this event will serve as an opportunity for the asset management market to evolve into a healthy asset growth platform through long-term investment.

Our fund industry has achieved remarkable growth, with fund assets under custody reaching 800 trillion KRW and 350 asset management companies as of the end of January 2022. Recently, a rapid shift toward the "Money Rush" era, where investors actively and proactively maximize returns, has been observed.

In response to these changing investor demands, various products have been launched, marking significant changes within the fund industry. First, Exchange-Traded Funds (ETFs) are rapidly growing, with themed and active ETFs recently gaining attention. Additionally, with the upcoming implementation of the pre-designated management system, the growth of Target Date Funds (TDFs), which automatically adjust the proportion of risky assets according to the extended life cycle, is expected to expand further.

With the spread of ESG (Environmental, Social, and Governance) values, the assets under management in socially responsible investment funds have increased approximately fourfold from 1.1 trillion KRW in 2020 to about 4 trillion KRW by the end of 2021, emphasizing an investment philosophy that prioritizes social responsibility.

In the midst of these significant changes, continuous efforts will be necessary to ensure the sustainable development of the asset management industry and to secure its own competitiveness.

First, to restore investor trust damaged by the private equity fund redemption suspension incident, it is essential to establish sound management order, fulfill fiduciary duties, and prioritize investor interests by adhering to the basics.

Second, in preparation for uncertain economic conditions such as the resurgence of COVID-19 and global monetary tightening, internal and external risk factors must be meticulously managed.

Third, in the era of digital transformation, to gain investors' trust, it is necessary to continuously build capabilities by developing creative and innovative products and enhancing professional expertise.

The financial supervisory authorities will closely monitor changes in the fund market and listen to voices from the field to provide institutional support for the growth of the asset management industry.

To the awardees and financial professionals, there is a Chinese proverb in Xinshu (信書) called "Geumseok Wi Gae (金石爲開)," which means that with strong will and full effort, even metal and stone can be penetrated. We hope that our asset management industry will overcome difficult challenges with strong will and dedication.

Taking the lessons from the private equity fund incident as a firm stepping stone, we hope that together, with strong will and continuous effort, we can become a trusted partner that investors can rely on to entrust their assets.

Once again, congratulations to all the recipients of today's awards, and we wish the "Asia Fund Awards" continued success and development.

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