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"Value of Major and Individual Shareholders Must Be Equal"

Bae Jae-gyu, CEO of Korea Investment Trust Management, is being interviewed on the 16th at Korea Investment Trust Management in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment Trust Management is launching a target date fund (TDF) product developed as a new strategy this year. The company is also considering recruiting external talent to strengthen competitiveness in exchange-traded funds (ETF) and TDFs.

On the 16th, at the Seoul Yeouido headquarters, Bae Jae-gyu, CEO of Korea Investment Trust Management, said, "By 2026, our goal is to be third in the industry for ETFs and TDFs, and first in the domestic and overseas stock sectors."

Korea Investment Trust Management is known as a prestigious asset management firm for traditional assets such as stocks and bonds. However, in the market trends of ETFs and TDFs, it is currently trailing competitors. CEO Bae emphasized that they will target the ETF and TDF markets with a differentiated strategy. He explained that ultimately, people are crucial. He said, "Although Korea Investment Trust Management has excellent talent, we plan to supplement some positions."

He particularly stressed the importance of "performance-based compensation." CEO Bae stated, "I cannot promise anything immediately regarding the salary system," but pointed out, "The decisive change in the status of asset management firms and securities companies over the past 20 years has been the incentive system." He reiterated, "Finance is ultimately about people. The issue is whether to fill 10% or 20% of the total employees with talented personnel."

CEO Bae, who first introduced ETFs and ELS in Korea, also set a record as the first external appointee to become CEO of Korea Investment Trust Management. When asked if support from Kim Nam-gu, chairman of Korea Investment Holdings, would be significant, CEO Bae replied, "If there is an organization necessary for Korea Investment Trust Management, I will personally take action and persuade them."

He hinted at a differentiation from competitors by saying, "This year, the newly developed Korea Investment Trust Management TDF will be launched."

He also revealed concerns about the recently controversial KINDEX Russia MSCI ETF. CEO Bae said, "I cannot give a definite answer on follow-up measures yet," adding, "It is nonsense that MSCI sent the product index to '0.' We are discussing this with the relevant parties."

He expressed hope that the next government will create policies that benefit long-term investors. CEO Bae pointed out, "In Korea, the value of major shareholders and minority shareholders is not the same," criticizing, "In spin-offs, M&A, recognition of controlling shareholder management premiums, and stock price calculation during mergers, all favor major shareholders."

He added, "Companies need to increase their return on equity (ROE)," and said, "This can be achieved through shareholder return policies such as share buybacks and dividends."

Bae Jae-gyu, CEO of Korea Investment Trust Management, is being interviewed on the 16th at Korea Investment Trust Management in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

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