Korea Capital Market Institute

Korea’s fund market and the regulatory framework have recently undergone significant changes, e.g., rapid growth in the exchange-traded funds, the newly introduced fund supermarket, the upward trend in pension assets, and the government-led plan to facilitate financial advisory services, etc. Such changes suggest that a substantial portion of mutual funds could be sold via financial advisory or investment management services in the future. However, it is important to note that the success of new fund distribution channels will depend on the quality of those services. In response to changes in market conditions and the regulatory framework, the relevant industries need to exert utmost efforts in improving service quality; differentiating services; and developing a wide variety of products.