The South Korean asset management industry is undergoing a significant transformation. The market is shifting from a focus on public funds to exchange-traded funds (ETFs), and the investment culture is evolving from short-term trading to long-term asset management centered on pensions. At the forefront of this change is Kim Young-sung, CEO of KB Asset Management.
Starting as a bond management expert, Kim has extensive experience in overseas investment, pension fund management, retirement pensions, and the ETF business, directly leading changes in the asset management sector. He is regarded as a practical manager who values results and principles over flashy celebrity CEO status. Kim's entrepreneurial spirit in finance is not merely about selling products; it is about building a long-term investment ecosystem for clients' retirement and asset growth, designing the future of the nation through finance.
Kim's journey from bond manager to asset management CEO has laid a solid foundation in finance. Entrepreneurial spirit does not only emerge from starting a business; it can also create new markets and values within existing organizations. In this sense, Kim embodies the typical financial entrepreneur.
He entered the finance industry in 1996 as a bond manager at Samsung Life. Over nearly 30 years, he has held various positions, including head of the bond management division at Samsung Asset Management, head of the overseas investment team at the Government Employees Pension Service, and head of global operations at KB Asset Management. He has gained recognition for his expertise in bonds and overseas investments.
Bond management is one of the most fundamental yet challenging areas in the financial industry. Risk management is prioritized over yield, and stability is favored over aggressiveness. Kim's management style reflects this bond management philosophy.
He emphasizes analysis over market prediction and asset allocation over speculation. "No one can predict the market. However, thorough analysis helps gauge the current phase," he said. This statement encapsulates the essence of his financial entrepreneurship. Finance ultimately involves handling clients' money. While innovation is important, trust is even more crucial. Therefore, Kim chose the path of a designer who builds trust rather than a flashy gambler.
To understand Kim Young-sung, one must first look at pensions before ETFs. He is recognized as a leading pension expert in the industry. His experience as head of the overseas investment team at the Government Employees Pension Service, along with his leadership in expanding pension operations after joining KB Asset Management, has been pivotal. Notably, in 2017, he launched the 'KB On-National TDF' in collaboration with global asset manager Vanguard, laying the groundwork for the growth of the domestic TDF market.
TDFs are representative pension investment products that automatically adjust asset allocation according to retirement timing. Kim foresaw early on that South Korea would enter a super-aged society. He believes the future of asset management lies not in simple fund sales but in retirement asset management services.
Currently, the domestic retirement pension market has surpassed 400 trillion won and is expected to grow rapidly. Kim views this as the most important future market. As a result, KB Asset Management's TDF market share has steadily increased, rising from 12.5% in 2023 to an anticipated 15% by 2025. Some products have recorded industry-leading long-term returns, establishing a reputation as a pension powerhouse. This success is not merely about product performance.
Kim is changing the investment habits of Koreans through pensions. While the past investment culture focused on short-term trading, he believes that the future will center on long-term investment culture based on pensions.
He believes financial companies should be institutions that design clients' futures. This belief is at the core of Kim Young-sung's financial entrepreneurship.
Since becoming CEO, Kim has aggressively driven the ETF sector, which is currently the most competitive battleground in the asset management industry. With fierce competition from firms like Samsung Asset Management, Mirae Asset Global Investments, and Korea Investment Trust Management, KB Asset Management is also working to expand its market dominance.
Immediately after taking office, he completely reorganized the ETF division, merging the existing ETF marketing and operations departments to create the ETF business division and actively recruiting external experts. He then restructured product and marketing functions to enhance organizational efficiency. Additionally, he initiated a major rebranding effort, replacing the KBSTAR brand with RISE.
This is not just a name change; it is a declaration of a shift in the philosophy of KB Asset Management's ETF business. Kim views ETFs not merely as investment products but as long-term asset management platforms. He explains the essence of the ETF market: "In the past, funds served as investment tools; now, ETFs fulfill that role." Therefore, he has chosen to eliminate small ETFs that are not recognized in the market and focus on growth areas such as AI, semiconductors, U.S. tech stocks, and pension-type ETFs.
Competition in the ETF market is ongoing. However, Kim prioritizes long-term brand competitiveness over short-term market share. His goal is not merely to compete for rankings but to create "the most trusted ETF brand" among investors.
Another characteristic of Kim Young-sung is his practical leadership. He emphasized organizational innovation immediately upon taking office, particularly advocating for a performance-based culture and agile organization. "Employees who achieve results should receive more rewards," he stated. "An agile organization capable of quick decision-making is necessary." This approach differs from the conservative culture of traditional financial firms.
Since taking office, he has actively pursued organizational restructuring and talent acquisition. Despite some internal resistance, he has maintained the principle that growth cannot occur without change.
The results are evident in the numbers. KB Asset Management surpassed 100 billion won in net profit for the first time in its history in 2024. Assets under management (AUM) grew from 138 trillion won to 203 trillion won, solidifying its position as the top asset management firm among banks. Notably, it achieved both growth and profitability simultaneously. While many financial firms see profitability decline during expansion, Kim has managed to excel in both areas. This success is not merely a result of market prosperity but a balanced operation of its business portfolio, including pensions, ETFs, bonds, overseas investments, and alternative investments. Thus, he is regarded as a 'balanced CEO' in the industry.
Looking ahead, Kim Young-sung envisions an AI-driven asset management future. Since taking office, he has identified AI and digital transformation as core strategies. "We will enhance operational efficiency through system and AI investments," he said. "We aim to become a smart mover in digital finance." This is not just a slogan.
AI is fundamentally changing the structure of the asset management industry. In the past, information was a competitive advantage. However, in an era where AI analyzes information almost in real-time, information itself becomes less of a differentiating factor.
Ultimately, competitiveness stems from asset allocation ability, investment philosophy, and customer trust. Kim Young-sung is a CEO who understands this better than anyone. He believes that the key to surviving in the AI era of asset management is 'performance.' No matter how glamorous the product, it is meaningless without supporting customer returns.
Therefore, he consistently emphasizes, "The first and foremost priority for asset managers is returns." Even in an era where AI assists investment decisions, gaining customers' trust ultimately relies on people. Kim Young-sung serves as a bridge connecting technology and finance, pensions and ETFs, growth and stability. His financial entrepreneurship can be described as a management style built on trust that aims to grow customer assets over the long term.
* This article has been translated by AI.
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