Korea Investment Management has set its sights on boosting ETF assets by roughly a third — from about 15 trillion won to 20 trillion won this year — as global equity markets show renewed volatility. CEO Bae Jae-kyu is leaning on target-date funds and a push to shift the investor mix towards individuals to drive the growth.

From active manager to ETF pioneer Bae Jae-kyu's career traces a clear arc from active equity management to passive products. He started in fixed-income and equity roles, including at SK Securities, then moved to Samsung Asset Management where he led KOSDAQ coverage and helped design Korea's early ETF market. He trained in derivatives while in Chicago and translated his index-investing work at Samsung into product innovation, pushing regulators and exchanges to build the legal and operational framework for ETFs in Korea. During his time at Samsung he also introduced early leveraged and inverse ETFs in Asia, cementing his reputation as a market innovator. He summed it up: "Those who resist change die. Those who adapt to change survive. Those who lead change become leaders." That background explains why Korea Investment Management is now positioning ETFs as a growth engine rather than a cosmetic product shift. Numbers and strategy: 15tn to 20tn won - Current AUM: The firm said ETF assets under management rose to roughly 15 trillion won after increasing from about 13 trillion won at the end of last year. - Target: Bae told journalists he wants to raise ETF AUM to 20 trillion won this year. - Product focus: The company's strategy centres on target-date funds (TDFs) as a core retail offering—multi-asset, lifecycle products designed to adjust allocation as a retirement date approaches. - Investor mix shift: Institutional investors historically dominated entrusted assets; the ratio has moved from roughly 70:30 (institutional:individual) to about 55:45. Bae said the firm aims to reverse that by 2030 to a 70:30 mix favouring individuals, mirroring profiles of global peers. Bae argues that TDFs and structured multi-asset passive options help individual investors avoid stop-start behaviour that erodes returns, noting that compounded returns require investors to stay invested through drawdowns. Facing a volatile market Bae has been explicit about the market backdrop and the inevitability of volatility. He says short-term price moves should not be treated as binary predictions and that product design should encourage long-term patience. "Many investors say they should have bought before Nvidia or Apple's stock prices rose," he said. He used Apple as an example: investors who held through repeated drawdowns after 2008 would have seen large long-term gains, underscoring his point that returns compound only if investors avoid selling after losses. The company's push to alter product rules and distribution—Bae is pressing regulators and the industry to adapt—aims to reduce short-term trading and build a more resilient retail base for passive products.

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Bae told journalists he expects to reach 20 trillion won in ETF AUM this year while pushing for product and distribution changes to steady long-term flows — and aims to shift the investor split to roughly 70:30 in favour of individuals by 2030.

This article was created with AI assistance.