This Year's Assets Under Management Swell by 427 Trillion Won, but the Top 10 Firms Take the Lion's Share

[Financial News] The amount of money managed by the asset management industry has increased by more than 400 trillion won so far this year, but the gains have effectively been concentrated in the top 10 firms. As large managers expand on the back of strong brand recognition and powerful sales channels, the gap between big and small firms is expected to widen further.
According to the Korea Financial Investment Association on the 26th, the asset management industry’s assets under management, or AUM, stood at 2,613.9427 trillion won as of the 21st, up 427.3378 trillion won, or 19.5%, from the start of the year. The figure combines funds and discretionary assets managed in South Korea.
Most of the increase went to the top 10 managers. The AUM of Samsung Group, Mirae Asset Financial Group, KB, Shinhan Financial Group, Korea Investment Holdings, Hanwha Group, NH Financial Group, Woori Bank, Kiwoom, and DB Group rose by 327.5459 trillion won this year. That means the top 10 firms accounted for 76.6% of the total increase across the industry.
By contrast, 195 of the 511 asset managers, or 38.2%, saw their AUM decline. In particular, Cansus Asset Management (-1.6004 trillion won), Eugene Asset Management Co., Ltd. (-1.4023 trillion won), AllianceBernstein Asset Management (Korea) Ltd. (-789.3 billion won), JB Asset Management (-775 billion won), Fidelity Asset Management (-617.7 billion won), and DWS Asset Management (-605.7 billion won) posted steep drops.
As a result, concentration is becoming even more pronounced. The top 10 managers now oversee 1,838.0234 trillion won in assets, accounting for 70.3% of the market. That is up 1.2 percentage points from 69.1% at the end of last year.
With the stock market rally continuing since the second half of last year, retail investor participation has surged, and investment money has flowed into well-known large products. In particular, in the fast-growing ETF market, investors tend to choose familiar large firms even when similar products are available.
Outside of ETFs, public funds show an even starker gap in accessibility. The top 10 managers sell their funds through an average of 110 distributors, while about 70% of asset managers have fewer than 10 sales partners.
One asset management industry official said, "The domestic capital market has grown rapidly recently, but most of the new money is flowing to large firms." The official added, "Large firms are also stepping up promotion, which further strengthens brand recognition and deepens the divide." He continued, "Distributors evaluate products to reduce risk, but smaller firms struggle to earn high marks because trading support is weak and fund inflows are sluggish. If access to products remains limited, inflows will inevitably slow, and that creates a vicious cycle that also limits the expansion of sales channels."
Another official also pointed out, "Because funds depend heavily on distributors' retail capabilities, sales performance varies depending on how well the distribution network is built." He added, "Managers affiliated with large securities firms or banks are structurally at an advantage."
[email protected] Seo Min-ji Reporter