Korea Investment Trust & Securities will transfer certain business segments, including securities funds and MMFs (money market funds), to Korea Investment Value Asset Management.
According to the Financial Supervisory Service's electronic disclosure system on the 27th, both Korea Investment Trust & Securities and Korea Investment Value Asset Management held board meetings today to approve the split merger agreement. The contract involves a spin-off of the securities fund and MMF business segments, which are part of Korea Investment Trust & Securities' operations, followed by their absorption into Korea Investment Value Asset Management.
The two companies plan to hold an extraordinary shareholders' meeting next month on the 11th to pass a resolution approving the split merger. The scheduled effective date for the split merger is January 1 next year.
A representative of Korea Financial Holdings stated, "Before the split merger, both Korea Investment Trust & Securities and Korea Investment Value Asset Management were 100% subsidiaries of Korea Investment & Securities," adding that "this status will remain unchanged even after the split merger."
It is expected that this organizational restructuring will separate passive management from active management. The passive segment is likely to remain with Korea Investment Trust & Securities, while the active segment is projected to be transferred to Korea Investment Value Asset Management. This move is interpreted as an effort by Korea Investment Trust & Securities to strengthen its competitiveness in the ETF business.
Bae Jae-kyu of Korea Investment Shin Tak-un-yong (CEO) is expected to remain with the passive management segment and oversee it overall. Bae (CEO) is an ETF expert who listed the first ETF in the domestic market in 2002. The transformation of Korea Investment Trust & Securities' ETF brand name from 'KINDEX' to 'ACE' and its growth to current scale were also achieved under Bae (CEO).
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