In the financial industry, latecomers have two strategies: follow the leaders or create new markets. Lee Seok-won, CEO of Shinhan Asset Management, chose the latter. A former head of the National Pension Service's strategy division, he has rapidly transformed the organization since taking the helm this year, focusing on ETFs and Target Date Funds (TDF) as dual growth pillars. He is particularly expanding differentiated products centered around the SOL ETF, including high-dividend, covered call, AI semiconductor, and shipbuilding offerings to enhance the company's presence.
Lee's entrepreneurial spirit in finance prioritizes understanding customer demand over competing on scale. He is currently experimenting with transforming Shinhan Asset Management into an "irreplaceable partner for customers."
Rethinking the ETF Market: A Contrarian Approach
The domestic asset management industry has long been dominated by Samsung Asset Management and Mirae Asset Management, making it challenging for latecomers to disrupt the market. Most follow the lead of top products or engage in fee competition.
However, Lee's approach was different. Shortly after his appointment, he elevated the ETF business to a strategic priority, establishing a dedicated ETF business group and expanding the organization. He brought in a Chief Investment Officer (CIO) and implemented a group leader system to enhance decision-making speed. This was not merely a reorganization; it was a declaration to make ETFs a future growth driver for the company.
The results have been swift. The net assets of the SOL ETF surged from approximately 12 trillion won at the end of 2024 to over 23 trillion won by the end of May 2026, marking an exceptional growth rate in the industry. Notably, products focused on AI semiconductors, covered calls, and high dividends have captured the interest of individual investors, establishing themselves as flagship offerings of Shinhan ETFs.
Lee does not view ETFs as mere financial products. He sees them as financial platforms connected to investors' lives. For retirees seeking monthly dividends, he offers covered call ETFs, while growth-oriented investors can access AI semiconductor ETFs. His strategy involves designing products based on customer needs.
Ultimately, his approach is straightforward: instead of following the leaders, he aims to create the markets that customers desire. This is the first hallmark of Lee's entrepreneurial spirit in finance.
Connecting Pensions and ETFs: Designing a Long-Term Investment Ecosystem
Viewing Lee solely as an ETF expert is only part of the picture; his true strength lies in pensions. He previously served as the head of the National Pension Service's fund management division, making him an expert in pension management and long-term asset allocation. This experience is reflected in his management of Shinhan Asset Management.
Lee is optimistic about the future of the pension market, as South Korea transitions into a super-aged society, making pensions a significant growth area for the financial industry.
Consequently, he is focusing on strengthening the TDF business. By establishing the Shinhan Easy TDF and Shinhan Quick Response TDF systems, he is expanding the market. As a result, the TDF management scale at Shinhan Asset Management has rapidly increased, along with its market share.
What he emphasizes is not merely selling products but fostering a culture of long-term asset management. Korean investors still engage heavily in short-term trading. However, in an aging society, long-term investment and asset allocation are crucial. Lee aims to create this investment culture by linking ETFs and pensions.
In fact, he stated in an interview, "Maximizing the economic benefits for customers is the reason for an asset management firm's existence," indicating a focus on viewing customer assets from a long-term performance perspective rather than short-term gains.
Thus, his management philosophy leans more towards trust than growth. He believes that building trust is essential for customers to entrust their retirement assets. Pensions do not yield results overnight; they require 10 to 20 years. Lee is a CEO who invests in that time.
Productive Finance and Digital Assets: A Leader Preparing for the Future
Another characteristic of Lee is his interest in future markets. He does not limit himself to ETFs and pensions; he is also active in investing in innovative companies and digital assets.
Shinhan Asset Management has established an Innovative Investment Finance Division and launched a Business Development Company (BDC) fund. This represents a prime example of productive finance, aimed at directing capital towards innovative companies. It signifies a commitment to not just managing money but also nurturing growth companies.
Lee's interest in digital assets is also high. Recently, Shinhan Financial Group has established a cooperative framework with the Canton Network, which includes global financial institutions. This is a global project aimed at building infrastructure for tokenization and digital assets. Lee envisions enhancing the global competitiveness of Korean financial products through this initiative.
This is not merely about adopting technology. He sees the future of finance shifting towards digital assets and tokenization. While it may not be a large market now, he believes it could become a crucial component of financial infrastructure in the future.
Especially in the age of AI, he emphasizes to his team members, "Let’s become irreplaceable talents." In an era where AI replaces simple tasks, expertise and differentiation become increasingly important.
This message applies not only to the organization but also to Shinhan Asset Management itself. In the ETF market, pension market, and digital asset market, the goal is to become an irreplaceable asset manager.
Ultimately, Lee's entrepreneurial spirit in finance can be summarized in three pillars: customer-centricity, long-term investment, and future innovation. He is currently working to transform Shinhan Asset Management from a mere asset manager into a lifelong partner for investors.
SWOT Analysis:
- Strength: Lee has extensive experience in long-term asset allocation and pension management as a former head of the National Pension Service's strategy division. He has rapidly restructured the ETF organization and led the growth of the SOL ETF while balancing the simultaneous growth of pensions and ETFs.
- Weakness: Compared to Samsung Asset Management and Mirae Asset Management, Shinhan Asset Management still has limited market dominance and brand power. The growth of ETFs is also concentrated in a few popular products, which poses a challenge.
- Opportunity: The expansion of the pension market due to aging, the increase in individual investor ETF participation, and the growth potential of digital assets and tokenization present significant opportunities for Shinhan Asset Management.
- Threat: Intensifying fee competition in the ETF market, polarization in the asset management industry, and increasing global market volatility remain ongoing risks. Regulatory changes related to digital assets also pose uncertainties.
* This article has been translated by AI.
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