Korea's asset management companies and investment trust companies are set to fight for the mutual fund market later this month following the government's approval of semi-open funds last week. Investors' response to the new products will be key to how fast the Korean unit investment trust industry reforms the more popular semi-open funds are, the less likely the government will quicken the wholescale unit trust reform process.
The new rules will allow Korean investors to invest in semi-open mutual funds. This means investors can redeem up to 50% of their funds after three months of investing, and 100% after six. Asset management companies AMCs and investment trust companies ITCs, on the...
