Recently, Korea’s asset management (AM) industry faces two contradicting market situations; the declining average management fee, and increasing assets under management (AUM). First, management fees have declined due to increased institutional holdings that generate low fees, and intensified competition among asset management companies (AMC). Because the decline in management fees may lead to a setback in AMC’s operating income structure, the industry should step up their efforts to cope with the situation. Korean AMCs must build their capacity to manage overseas investments not to lose Korean institutional investors’ overseas assets to global players. Simultaneously, they must gear up for overseas expansion by creating demand of overseas clients and attracting more investments. Also important is to regain retail investors’ confidence and lure those investors back into the equity funds market.