| Samsung Asset Management Deputy CEO Bae Jae-kyu / Korea Times file |
By Park Jae-hyuk
Samsung Asset Management Deputy CEO Bae Jae-kyu, who is well-known for introducing the Korean Market's first exchange traded-fund (ETF), was named the new leader of Korea Investment Management (KIM), according to industry officials, Thursday.
KIM is an asset management subsidiary of Korea Investment Holdings (KIH).
Its recent leadership decision is interpreted as KIH Chairman Kim Nam-goo's intention to bet on the rapid growth of the local ETF market, amid the slowdown lately in the public offering fund market.
Bae, who previously worked for Korea Merchant Banking and SK Securities, joined Samsung Asset in 2000, and came up with the nation's first ETF, the KODEX 200, in 2002, after convincing financial authorities of its value.
Despite earlier thoughts last month that he would be ousted from his position after the year-end annual reshuffle of senior executives, he also enabled the listing on the Hong Kong Stock Exchange of the Samsung Bloomberg Global Semiconductor ETF, which invests in the world's top 20 semiconductor companies, including Samsung Electronics and TSMC.
Under his leadership, Samsung Asset has maintained the leading domestic market share in ETFs.
KIM, on the other hand, is still at fourth place, following Samsung Asset, Mirae Asset Global Investments and KB Asset Management. Bae is expected to help KIM rise to third place, widening its gap with NH-Ahmundi, Kiwoom and Hanwha asset management firms.
According to KIM, its executive reshuffle will be announced Friday at the earliest, and will be confirmed after the forthcoming meetings of its board of directors and shareholders.
Incumbent CEO Cho Hong-rae will transfer to KIH, according to industry officials.
Bae's departure will also affect the upcoming executive reshuffle of Samsung Asset and the conglomerate's four other major financial affiliates: Samsung Life Insurance, Samsung Fire & Marine Insurance, Samsung Card and Samsung Securities.
Current Samsung Asset CEO Shim Jong-keug's term will end in March 2023, but most of his predecessors stepped down after spending two years as CEO. Shim was appointed in January 2020.
Shim failed to widen the gap with Mirae Asset, Samsung Asset's chief local rival in the race for the booming ETF market, in which Mirae raised its share to above 30 percent this year on the back of the continued popularity of TIGER ETFs.
In contrast, Samsung Asset's share in the local ETF market, which once topped 50 percent, fell below 45 percent this year. Samsung's financial affiliates are set to replace many top-tier and senior executives during the upcoming yearend reshuffle, predicted to bring a generational shift in leadership.