South Korea’s KB Asset Management Co. is expected to establish its first overseas subsidiary in Singapore next year in a move to enhance global competitiveness to seek solutions to overcome the country’s overall sluggish fund market. The asset manager is also considering setting up an office in the United States to expand global infrastructure investment that is expected to get a boost under the incoming Donald Trump administration.

According to multiple sources from the asset management industry on Monday, KB Asset Management plans to set up an overseas subsidiary in Singapore in March, next year. The plan has already been approved and internally reviewed and a group of working-level employees will visit the Southeast Asian country next week to speed up operations.

Lee Hee-kwon, president and chief executive of KB Asset Management, said that the company has decided to set up a subsidiary in Singapore as it thought it is now time to make a foray into overseas markets. The subsidiary will first start off as a hedge fund-exclusive manager before turning into a comprehensive asset management company in the future, Lee added.

It is the first time for KB Asset Management to set up an overseas subsidiary. The company is considered a late runner in tapping into other markets when compared to other rivals Mirae Asset Global Investments Co. and Samsung Asset Management Co. that have moved swiftly by setting up overseas subsidiaries in major markets including the U.S. and China.

KB Asset Management is now one of the country’s top three asset managers. Before Lee took office in 2013, the company was among the industry’s middle-ranking asset managers. KB Asset Management’s decision to expand its presence overseas is largely based on solid domestic results.

Meanwhile, according to industry sources, KB Asset Management is also considering entering into the U.S. market by opening an office and sending employees from its headquarters in Korea. The move comes as part of efforts to find direct investment opportunities in the U.S. as it expects overall infrastructure investment to grow in the U.S. under Trump administration.

By Kim Hyo-hye

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