In 2008, the Bank offered more than 72 different types of funds that enabled clients to diversify their investment portfolios. Expanding its trust business into new areas, IBK aggressively gained the presence in the highly profitable, non-securitieslinked funds market and secured a revenue pipeline flown from ‘Carbon Fund’, ‘Real Estate Fund’, and ‘Distinctive Asset Fund’. The Bank also held conferences to strengthen its position in the pension fund market.
The Bank’s asset management business can be classified into four broad categories: sales of beneficiary certificates, money trust accounts, corporate pension funds, and custody business. In 2008, net income from asset management amounted to KRW 69 billion, up by 5.8% compared to the previous year.
The Bank’s asset management business can be classified into four broad categories: sales of beneficiary certificates, money trust accounts, corporate pension funds, and custody business. In 2008, net income from asset management amounted to KRW 69 billion, up by 5.8% compared to the previous year.
The Bank retained KRW 47 billion of beneficiary certificate accounts and KRW 21.8 trillion of trust funds, which represented a decrease of KRW 1.3 trillion and increase of KRW 5.1 trillion respectively from the previous year. In pension business, IBK targeted existing SME clients and retained 5,153 corporate clients at the end of 2008, capturing an 8.44% market share of pension funds among Korean banks.
After the implementation of the FSCMA in February, the asset management sector is expected to grow further in 2009. Although stock markets may be sluggish due to the dim prospect for economic growth, the fund market in Korea is expected to continue to develop, particularly considering the historically low interest rates. Moreover, compared to other advanced countries, the portion of funds of total household assets is still relatively low in Korea, which indicates further opportunity for growth.
Additionally, many banks regard the corporate pension fund market as a blue ocean, since current pension insurance and pension trusts amounting to KRW 23.3 trillion are to be transferred to pension funds by 2010. Taking full advantage of the pension fund regulation legislated in December 2005, IBK has launched the "Fun-Fun Promotion" and reformed the interest-rate and fee structures. Setting up a pension fund division with experienced talents, we have integrated our core competence in product development and marketing.
IBK is concentrating on the asset management business to seize this opportunity by bringing in experienced professionals and establishing an advanced system. Owing to the fact that IBK, as the leader in the SME banking by market share, possessing everything necessary to provide corporations with full financial packages, the Bank has every prospect of a bright future in the field of asset management business.
Additionally, many banks regard the corporate pension fund market as a blue ocean, since current pension insurance and pension trusts amounting to KRW 23.3 trillion are to be transferred to pension funds by 2010. Taking full advantage of the pension fund regulation legislated in December 2005, IBK has launched the "Fun-Fun Promotion" and reformed the interest-rate and fee structures. Setting up a pension fund division with experienced talents, we have integrated our core competence in product development and marketing.
IBK is concentrating on the asset management business to seize this opportunity by bringing in experienced professionals and establishing an advanced system. Owing to the fact that IBK, as the leader in the SME banking by market share, possessing everything necessary to provide corporations with full financial packages, the Bank has every prospect of a bright future in the field of asset management business.
