The artificial intelligence (AI) investment fervor sweeping markets at home and abroad is reshaping the rankings of Korean asset management firms. A surge in semiconductor stocks led by Samsung Electronics (005930.KS) and SK hynix (000660.KS) has extended beyond the KOSPI rally to boost the net asset totals of firms holding related exchange-traded funds (ETFs), intensifying competition among rivals.
According to the financial investment industry on Nov. 7, KB Asset Management's ETF net assets stood at 32.4668 trillion won as of Nov. 6, edging out Korea Investment Management's 32.4552 trillion won by 11.6 billion won. This marks the first time in about eight months, since September last year, that KB has overtaken Korea Investment to reclaim third place in the industry. The two firms have long competed for the No. 3 position, but Korea Investment had maintained its lead since taking the spot on the back of the success of its physical gold ETF. As recently as the end of last year, Korea Investment Management's ETF net assets totaled 25.3505 trillion won, more than 4 trillion won ahead of KB Asset Management's 21.0866 trillion won.
The rapid narrowing of the gap is attributed to the strong performance of domestic equity ETFs. The KOSPI has climbed 77.73% so far this year, with Samsung Electronics and SK hynix leading the advance with gains of 126.44% and 154.07%, respectively. The net assets of KB's "RISE Samsung Electronics SK hynix Bond Mixed 50 ETF" also ballooned to 1.6113 trillion won in the two months following its launch in late February. The RISE Korea Value-Up ETF's net assets also surpassed 1 trillion won. Analysts say lowering the total expense ratio on pension-based products has also contributed.
In the mid-tier race, fortunes diverged among firms depending on their exposure to AI and semiconductors. TIMEFOLIO Asset Management has held onto seventh place in ETF net assets since overtaking Kiwoom Asset Management in March. As of Nov. 6, its net assets totaled 7.5854 trillion won. Its flagship "TIME Global AI Artificial Intelligence Active ETF" attracted 759.7 billion won in April alone. The fund holds global AI-related companies including SanDisk (7.27%), Intel (7.24%) and ARM Holdings (5.76%).
NH-Amundi Asset Management also climbed to eighth place on Oct. 24, overtaking Kiwoom with its semiconductor ETF. At the time, the gap in net assets between the two firms was around 22.6 billion won, but it had widened to 467.9 billion won by Nov. 6. Its flagship "HANARO Fn K-Semiconductor ETF" absorbed 1.1622 trillion won in April alone, pushing its net assets to 2.6424 trillion won. The fund mainly holds major Korean semiconductor companies including SK hynix (26.44%), Samsung Electronics (23.22%) and Samsung Electro-Mechanics (009150.KS) (23.08%). Kiwoom, by contrast, has no semiconductor-themed product in its lineup of ETFs with net assets exceeding 100 billion won, leaving it unable to ride the tailwind from the stock market boom centered on large-cap chip stocks, analysts said.
