Korea Investment Trust is experiencing a notable departure of personnel in its operations, product, and marketing divisions. While job changes are common in the asset management sector, they typically peak at the beginning of the year. Departures are less frequent during the year, especially when firms are focused on sales efforts. This recent trend at Korea Investment Trust is considered unusual by industry observers.
According to the financial investment industry on August 20, approximately five employees related to operations, products, and marketing have left Korea Investment Trust this year. Given the size of the ETF team, which includes about seven operational staff and totals around 20, this is a significant number.
Reports indicate that these individuals have moved to competitors such as Shinhan Asset Management, KB Asset Management, Hana Asset Management, and DS Asset Management. Employees from the product division have transitioned to KB Asset Management, while some marketing staff have recently joined Hana Asset Management and DS Asset Management. There are also indications that more operational staff may leave for Shinhan Asset Management in the second half of the year.
Analysts suggest that a combination of internal and external factors has contributed to this employee exodus.
Externally, intensified competition in the ETF market is a significant factor. Korea Investment Trust has been strengthening its ETF offerings, particularly focusing on U.S. big tech stocks, but its market share has not seen substantial growth.
Internally, uncertainties regarding organizational restructuring and compensation have been cited as reasons for the departures. In May, Korea Investment Trust announced during an internal meeting that it would separate its passive and active management divisions, a decision communicated to the entire company. However, the specifics of the separation and personnel transitions have yet to be finalized, with expectations that these will be determined in the second half of the year.
There are also concerns within the company that the performance bonuses expected to be paid early next year may fall short of expectations. This anxiety has been exacerbated by a reported loss of approximately 6 billion won during the regular rebalancing of the ACE Nuclear TOP10 ETF in June, raising worries about this year's performance.
In terms of profitability, the gap between Korea Investment Trust and its competitors is widening. According to the Financial Investment Association, last year's net profits were 713 billion won for Mirae Asset Management, 133.9 billion won for Samsung Asset Management, 115 billion won for KB Asset Management, 64.2 billion won for Korea Investment Trust, and 50 billion won for Shinhan Asset Management. However, the net profits for the first half of this year have shifted to 906.2 billion won for Mirae Asset Management, 129.4 billion won for Samsung Asset Management, 78.3 billion won for KB Asset Management, 47.4 billion won for Shinhan Asset Management, and 43.7 billion won for Korea Investment Trust.
An industry insider noted, “While performance bonuses were relatively high at the beginning of the year, uncertainty about next year's bonuses seems to have dampened morale, leading some employees to seek opportunities elsewhere while conditions are still favorable.”
However, representatives from Korea Investment Trust maintain that the level of employee departures is not particularly high. A spokesperson stated, “The turnover rate for the first half of the year is in line with the industry average.”
* This article has been translated by AI.
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