South Korean IMA market nears 4 trillion won in rapid growth

The Investment Management Account (IMA) market in South Korea is experiencing rapid growth, with cumulative funds raised by three major securities firms approaching 4 trillion won within six months of launch. These accounts, which allow firms with over 8 trillion won in equity to invest client funds into corporate finance assets like loans and bonds, are gaining popularity as stable alternatives to the volatile stock market due to the securities firms' obligation to guarantee principal.

NH Investment & Securities recently saw its third IMA product sell out within a single day, reaching its 120 billion won target. Notably, 68% of the sales for this third round came from clients with assets exceeding 1 billion won, indicating rising interest among high-net-worth individuals. Korea Investment & Securities remains the market leader in scale, with its IMA settings reaching 2.94 trillion won as of the end of the second quarter. Meanwhile, Mirae Asset Securities is also actively expanding its offerings, recently raising its benchmark return rate to attract investors.

In a separate development, Samsung Asset Management has listed the KODEX Korea TDF 2065 Active ETF. This product is the first domestic qualified Target Date Fund (TDF) ETF to follow revised regulations, allowing it to be invested up to 100% within retirement pension accounts without the usual 70% risk asset limit.