JPMorgan Asset Management Co. has decided to fold its fund management business in Korea due to dwindling assets and snowballing losses.
The U.S.-based investment banking giant said Wednesday that it is considering transferring the funds to other asset managers. The reorganization is part of its global business strategy, the firm said.
The shutter comes 11 years after the company launched asset management business in Korea in 2007. Earlier the company reduced its Seoul staff by nearly 40 percent from 52 in late 2013 to 32. Assets under management have also shrunk to 830 billion won ($733 million) from 3.2 trillion won in 2012.
Customers can choose to leave the assets under management by other companies or take their money out, an official from the Financial Supervisory Service said.
JPMorgan will continue its market research and investment advisory services for institutional investors. The restructure will also not affect the business of its affiliates - the Seoul operations of JPMorgan Securities and JPMorgan Chase Bank N.A.
By Han Ye-kyung and Kim Hyo-hye
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