Kiwoom Asset Management Changes ETF Brand to ‘KIWOOM’

Kiwoom Asset Management has abruptly changed its exchange-traded fund (ETF) brand name from ‘KOSEF’ and ‘Heroes’ to ‘KIWOOM.’ The aim is to leverage the strong brand image of ‘Kiwoom’ in the stock market to enhance the power of its ETF brand and strengthen its business targeting individual investors.

On the 14th, Kiwoom Asset Management announced that it had unified its passive ETF brand ‘KOSEF’ and active ETF brand ‘Heroes’ under the name ‘KIWOOM.’ Accordingly, the existing 46 KOSEF ETFs and 15 Heroes ETFs were renamed KIWOOM ETFs as of that day. This is the first ETF brand overhaul by Kiwoom Asset Management in 22 years and 3 months since the launch of Korea’s first ETF, ‘KOSEF 200,’ on October 14, 2002.

Kiwoom Asset Management launched this rebranding move focusing on the explosive growth of the Korean ETF market and the increasing influence of individual investors. The new ETF brand chosen is ‘KIWOOM,’ a brand shared by the parent company Kiwoom Securities and the entire Dow Kiwoom Group’s financial affiliates. The strategy is to instantly raise the brand awareness of KIWOOM ETFs by utilizing the well-known group brand in the domestic stock market. The image of growth and upward momentum evoked by the word ‘Kiwoom’ is also incorporated into the KIWOOM ETF brand image.

Traditionally known as a ‘bond specialist,’ Kiwoom Asset Management has expanded its ETF business mainly with bond-type products and institutional investors. Representative bond ETFs such as ‘KOSEF Treasury Bond 10-Year,’ which invests in Korea’s flagship long-term government bonds, and ‘Heroes Comprehensive Bond (AA- or higher) Active,’ which invests broadly in the domestic bond market, have been regarded as Kiwoom’s flagship bond ETFs supported by a solid institutional investor base.

Among equity ETFs, ‘KOSEF 200TR,’ which tracks the total return (TR) index of Korea’s representative stock market index KOSPI200, has held a strong position. Compared to products tracking the price (PR) index, it has delivered higher long-term performance and a low expense ratio of 0.012% per year, aiding institutional investors’ low-cost investment in the domestic market. Kiwoom Asset Management also pioneered the launch of Korea’s first India ETF, ‘KOSEF India Nifty50 (Synthetic),’ in June 2014, opening the door for Korean investors to the Indian stock market.

Since 2020, Kiwoom Asset Management’s ETF lineup has expanded into domestic and international growth industries and themes. This was in response to the significant increase in individual investor participation in the Korean ETF market during the COVID-19 pandemic. From 2021, it expanded products investing in global future mobility, the U.S. ETF industry, and major U.S. indices. Since 2023, it has offered investment products in high-growth potential industries such as global AI semiconductors, domestic medical AI, and U.S. quantum computing.

In March 2022, Kiwoom Asset Management launched active ETFs under the separate brand ‘Heroes,’ operating alongside the passive ETF brand ‘KOSEF.’ However, to avoid investor confusion caused by maintaining two brands and to concentrate marketing efforts on a single brand, the company unified the brands after 2 years and 10 months.

Going forward, Kiwoom Asset Management aims to expand its main customer base from a solid institutional investor foundation to include individual investors and to evolve from a bond specialist image to a provider of investment solutions covering all asset classes.

In particular, with the active use of ETFs in retirement pensions, the company plans to focus on launching products that help grow pension assets, asset allocation, and cash flow management. Dividend-type products and bond-mixed products are examples. It will also actively pursue expanding thematic product lines that invest proactively in future industries such as quantum computing, space industry, and AI value chains. The company is also interested in developing products that capture new opportunities amid the changing global environment, including the U.S.-China hegemony competition and global supply chain restructuring.

Kim Ki-hyun, CEO of Kiwoom Asset Management, said, “As the domestic ETF market is dynamically reorganizing amid fierce competition, we judged that a new turning point is needed to expand ETF brand awareness, strengthen product competitiveness, and consolidate marketing activities. With the brand overhaul after more than 22 years, Kiwoom Asset Management will add new momentum to its ETF business and make this year a milestone for a great leap forward, establishing itself as a partner that helps more investors with long-term asset growth.”

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