GSAM closure in Korea ends Tong Yang deal

Goldman Sachs Asset Management has closed its onshore business in Korea after five years of losing money. The decision will also put an end to a sub-advisory relationship with Tong Yang Asset Management, as that was meant to give GSAM a window toward selling local products to local investors. Market sources say the deal shows the danger of being too reliant on institutional business. Fees in Korea are very low, given the number of domestic fund houses, all of them backed by larger…