South Korea has proven a tough nut to crack for global asset managers. Franklin Templeton is the latest firm to buckle.
The American money manager Franklin Templeton will merge its business in Seoul with a subsidiary of Samsung's asset management arm, the two firms said in a statement. They will jointly manage the new business, Samsung Franklin Templeton, with equal representation.
Samsung Franklin Templeton plan to establish the joint venture in the second half of 2018, subject to regulatory approval.
Dominated by Domestic Firms
South Korea's asset management market is dominated by domestic institutions, and meager profit margins have made it difficult for companies lacking scale in the country to compete. J.P. Morgan shuttered its asset management unit in the country last year, while Goldman Sachs left five years ago.
