Korea fund houses betting on pensions for salvation

The pre-global financial crisis model for selling mutual funds in Korea is broken and it might require the expansion of corporate pensions before it revives, says Thae Khwarg, CEO at SEI Asset Korea. Lipper data shows that the local funds industry suffered net outflows of $26.3 billion in the fourth quarter of 2010. Although this is often attributed to retail investors selling equity products into a rising stock market (in order to break even from loss-making funds), Khwarg note…