October 30, 2024

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South Korean firm Koscom disclosed Wednesday that it plans to acquire HSBC Fund Services Korea, to dive into the asset management sector.

After a year of preparation for the takeover, the company has signed an agreement with the United Kingdom-based HSBC to acquire a 92.66 percent stake in the fund administration services firm. The latest deal marks the first acquisition project for the Korean company since it was founded in September 1977. 

Koscom headquarters in Yeouido, western Seoul (Koscom)

Koscom seeks to expand its business into the IT asset management field as the importance of asset management grows due to the aging population and low interest rates. The volume of local asset management grew by 167 trillion won ($140.71 billion), or 15.2 percent, from 1096 trillion won in end-2017 to 1263 trillion won last year.

With the help of HSBC, the company aims to become a key player in the wealth-tech platform segment, which utilizes artificial intelligence, big data and open application programming interface in running total asset management platforms to offer tailored services to clients, a Koscom official said.

After the acquisition, the company said it will try to take the country’s asset management industry up by a notch by introducing cutting edge IT services such as the real-time asset management system and portfolio construction using robo advisers, or digital algorithm-based wealth-management services.

“After completing the takeover, we will become a game changer in the IT asset management industry. We’ll also make efforts to increase jobs in finance and IT industries and reshape the market,” said Koscom CEO Chung Jee-seok.

By Jie Ye-eun yeeun@heraldcorp.com)