As the exchange-traded fund (ETF) market rapidly grows, with expectations to surpass 200 trillion won in net assets this year, asset management firms like Hana, Samsung, KB, and NH are changing the heads of their ETF departments at the end of this year and the beginning of next year. Despite ETFs being the most promising business sector, there is a severe lack of skilled professionals within the industry, leading to an intense competition for talent.
According to industry sources, Kim Seung-hyun, who was responsible for ETF consulting at Korea Investment Management, will move to Hana Asset Management as the head of the ETF division early this year. It is reported that Hana Asset Management will promote Kim, born in 1984, from deputy general manager to assistant vice president.
Other firms have also recently appointed new heads for their ETF divisions. Samsung Asset Management, the industry’s leader, recruited Park Myung-je, a former country representative of BlackRock Korea, as head of its ETF business late last year. Meanwhile, Ha Ji-won, Samsung Asset Management’s previous ETF head, transferred to a subsidiary as the CEO of Samsung Active Asset Management.
KB Asset Management appointed Noh Ah-reum, born in 1982 and head of ETF operations, as its new ETF head. NH-Amundi Asset Management, after considering external candidates, filled the vacant ETF head position with Kim Seung-cheol, their internal head of passive solutions. The ETF division head will also be handled by Han Soo-il, the head of bond management, with Kim moving to marketing.
The frequent change of ETF heads at these firms indicates their belief that the success of this year’s fund business will largely depend on the ETF sector. However, the industry struggles to keep pace with its rapid growth due to a lack of specialized personnel. Most of the talent, initially cultivated by Bae Jae-gyu during his tenure at Samsung Asset Management, known as the ‘ETF evangelist,’ still dominate the industry. Many current leaders, including Lee Kyung-jun at Mirae Asset, Kim Jung-hyun at Shinhan Asset Management, and Kim Nam-ui at Timefolio, to name a few, hail from Samsung Asset Management. Apart from a few like Hana Asset Management, many firms are resorting to internal promotions due to limited talent resources and high salary demands.
One senior industry official explained, “There’s an even smaller number of talent than known who can fully commercialize ETFs and oversee all related processes.”