[Q&A] Korea Investment Trust Management "Launching Semiconductor-related ETFs in Second Half... Direct Challenge with ACE Brand"

ETF Brand Change... 'ACE' Unveiled
Active Development of Both Benchmark and Thematic Types
"Developing Products Never Released Before"
"Recruiting Samsung Asset Management Staff After Job Change Is Disrespectful"

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment Trust Management (KINTEX) is making a bold move to change its exchange-traded fund (ETF) brand name from ‘KINDEX’ to ‘ACE.’ This is interpreted as a strong determination to seize the winning position in the explosively growing ETF market. CEO Bae Jae-gyu, CIO Shim Jae-hwan, Executive Director of Business Planning Cho Jun-hwan, and Head of Digital ETF Marketing Kim Chan-young shared detailed reasons, purposes, and market strategies behind the brand change. Below is the full Q&A from the briefing.

△ After the brand change, you expressed your ambition to compete head-to-head with top-tier asset managers like Mirae Asset Global Investments and Samsung Asset Management. What is your product development strategy?

- (Head of Department Kim Chan-young) Market changes are so rapid that we can only forecast about 2 to 3 months ahead. Recently, we have been focusing a lot on semiconductor-related products. We will develop products reflecting customer difficulties through various non-face-to-face channels such as the Digital ETF Marketing Department. Everyone is launching similar products. This emphasizes the power of the brand.

△ When will the ‘ACE’ brand be applied? Also, what about recruiting talent related to ETFs?

- (CEO Bae Jae-gyu) After filing with the Financial Supervisory Service, the brand will be applied starting October 13. The ETF business is the most challenging. We need to nurture talent because there is a shortage of people. Asset management broadly divides into product development, management, and marketing. The core is development and marketing. Training internal staff is as necessary as recruiting talent.

△ You mentioned direct competition means competing not only with thematic products but also with flagship indices. What strategies do you have?

- (Head of Department Kim Chan-young) Fee competition has no answer. We plan to compete with flagship index products as well as derivative products like leverage and inverse ETFs.

△ Some view the brand change as unnecessary.

- (CEO Bae Jae-gyu) Brand change is not simply changing the name. It means changing the entire business. To truly demonstrate a ‘customer value-oriented’ commitment, a new change was necessary.

△ The brand overlaps with others. From a marketing perspective, there may be concerns about image imprinting effects.

- Beds, snacks, and Yakult also share the same brand name. The principle was to change the brand through an internal contest. It was the most popular brand among employees. We understand the concerns. For ETFs, being the first to appear in searches is also important. We concluded that the advantages sufficiently offset the disadvantages.

△ There was no explanation about strengthening research capabilities related to product development. Are you collaborating externally?

- (CIO Shim Jae-hwan) ETF competitiveness lies in product development, management, and marketing. Research is a crucial part of product development. KINTEX is one of the few comprehensive asset managers that owns a research house. We are not lagging behind other asset managers in competitiveness. Until now, compared to large firms, we lacked product lineups and could not respond promptly. Going forward, we will respond to the market through our product lineup.

△ There are rumors of a verbal agreement not to recruit former Samsung Asset Management employees. What are your plans for talent acquisition?

- (CEO Bae Jae-gyu) We are willing to invest in new talent even if it costs money. However, I believe it is improper to recruit former Samsung Asset Management employees immediately after their departure. We will not bring in ETF personnel for the time being. Please wait.

△ What ETFs do you recommend during high volatility?

- (CEO Bae Jae-gyu) Currently, the ETF market trend is largely twofold: products that are well-diversified in portfolios with low volatility and upward trends, and products that ride volatility (leverage and inverse ETFs). Ultimately, it is questionable whether customers can make money through derivative products. These products offer the most efficient investment. We are considering products that other asset managers have not launched.

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