With the intensifying competition in exchange-traded funds (ETFs), talent departure is occurring at Mirae Asset Global Investments following Samsung Asset Management. In recent years, Samsung Asset Management, the market share leader, had been troubled by talent outflow, but now the situation has spread to Mirae Asset Global Investments, which ranks second. Industry insiders are reporting that employees fatigued from the competition with Samsung Asset Management are choosing alternatives other than Mirae Asset Global Investments.
According to the financial investment industry on the 24th, Deputy Minister Lee Kyung-jun of Mirae Asset Global Investments will move to Kiwoom Asset Management as the ETF head. There is also a possibility that employees who had collaborated with this Deputy Minister may additionally transfer to Kiwoom Asset Management. Kim Jong-hyeop, head of multi-asset management at Kiwoom Asset Management, who originally led the ETF, is expected to focus on index and quantitative work.
Given that this Deputy Minister created the 'covered call,' a hit product for Mirae Asset Global Investments last year, the market has high expectations for his performance at Kiwoom Asset Management as well. A covered call is a technique of selling call options (the right to buy at a predetermined price) to provide distributions, and as monthly dividends became the trend, the Deputy Minister's judgment in promoting covered calls proved to be correct. Mirae Asset Global Investments grew the net worth of its covered call products last year from 678.3 billion won to 4.09 trillion won, centered around the 'TIGER U.S. Dividend Dow Jones Target.'
Thanks to this, the market share gap with Samsung Asset Management decreased from 2.52 percentage points at the beginning of last year to 2.07 percentage points. At one point, Samsung Asset Management held half of the market, but its market share has now dropped below 40%. However, simultaneously, fatigue among employees at Mirae Asset Global Investments has accumulated. Last year, the talent outflow from Mirae Asset Global Investments remained steady, with 6 to 7 moving to other companies or transferring to the affiliate Mirae Asset Securities.
Mirae Asset Global Investments is reportedly facing significant internal pressure, but there is also considerable external burden from competition with Samsung Asset Management, as one asset management company’s unique attempts are often challenged by another.
A clear example of this is the cancellation of the non-taxable NASDAQ 100 ETF listing last year. Originally, a tax of 15.4% was supposed to be imposed, but Mirae Asset Global Investments attempted to create a non-taxable product by exploiting a loophole in tax law. Discussions with the Korea Exchange had already concluded.
However, recognizing the product, Samsung Asset Management inquired with the Ministry of Strategy and Finance. The essence of the inquiry was whether it was permissible to launch a non-taxable ETF under that structure. In response, the ministry determined after two months that it was a product that evaded the intent of the tax law and advised against its launch.
Ultimately, Mirae Asset Global Investments listed an ETF without the advantages of being non-taxable. An industry insider noted, "It’s difficult for the relationship between employees of Samsung Asset Management and Mirae Asset Global Investments to be positive given the structure."
The trend of talent outflow from Samsung Asset Management, which began in 2019, is now reappearing at Mirae Asset Global Investments. At that time, Kim Nam-ki, head of the ETF management team at Samsung Asset Management, moved to Mirae Asset Global Investments. He is currently the representative of the ETF management division at Mirae Asset Global Investments. Bae Jae-kyu, a vice president at Samsung Asset Management, has moved to Korea Investment Trust Management and is currently serving as president.
Similarly, Kim Chan-young, Kim Jung-hyun, and Kim Nam-ui, who were team leaders at Samsung Asset Management, have sequentially moved to KB Asset Management, Shinhan Asset Management, and Timefolio Asset Management to take on the role of ETF head. However, Kim Chan-young, head of the ETF business division at KB Asset Management, has resigned from his position. Deputy Minister Lee Kyung-jun’s background is also at Samsung Asset Management.
Meanwhile, with the addition of Deputy Minister Lee Kyung-jun, Kiwoom Asset Management is expected to strengthen its ETF business. The target is Shinhan Asset Management, which currently ranks fifth in market share. The combined net worth of the two companies' ETFs amounts to 2.5 trillion won.