Police raid striking doctors' homes, offices, after deadline passes on return-to-work order
Yoon touts improved Japan ties on Independence Movement Day as gateway to 'new world'
DP leader Lee retains ticket to his constituency for April elections
Korean stocks benefit from Zuckerberg's Seoul visit
Tensions loom as doctors plan mass rally in deepening clash over med school quota
[Weekender] Car camping: How solo female campers enjoy outdoors
[EYE] A Buddhist temple where animal spirits find peace
NewJeans, Silica Gel win 3 prizes at KMAs; Beenzino nets album of the year
S. Korea's meat consumption exceeds rice intakes for 2nd year
South Korea publicly orders some doctors who walked off the job back to work
Robo-advisers thrust in spotlight amid coronavirus pandemicBy Kim Young-won
Published : Jan. 17, 2021 - 17:47
Robo-adviser or automated asset management companies Fount, AIM and December & Company currently manage a total of 1.25 trillion won, up 402.9 percent from 247.9 billion won a year ago.
Robo-advisers offer highly tailored asset management services based on automated systems for individuals.
The asset management systems, for instance, design investment portfolios consisting of bonds and exchange-traded funds and rebalance them according to market conditions.
Robo-adviser services have been in the limelight since the coronavirus crisis started early last year as they reduce human interaction.
Fount saw its contracts for asset management grow from 146.1 billion won in late 2019 to 822.7 billion won in late 2020, while AIM newly inked 393 billion won in contracts late last year, up from 295 billion won. December & Company made contracts worth 31.1 billion won late last year, up 27.3 billion won from a year earlier.
“Robo-advisers tend to spread money among diverse assets,” said Kwon Min-kyung, a researcher at local think tank Korea Capital Market Institute. “They can be more effective than direct investment by humans as they exclude emotions and make rational investment.”
As savings yields are staying disappointingly low these days, individuals will likely turn toward new investment strategies like those offered by artificial intelligence-powered advisers, according to market watchers.
Individual investors seem to expect that robo-advisers will be able to offer new value, different from traditional asset management firms that usually put priority on selling investment products to customers over anything else, they said.
“Those robo-adviser startups also need to continue providing differentiated value for customers if they do not want to be a short-term fad,” a market watcher said.
By Kim Young-won (firstname.lastname@example.org)
Tensions loom as doctors plan mass rally
S. Korea’s 1st spy satellite sends ‘quality’ images of Pyongyang
Ex-PPP leader to run for seat in less conservative Hwaseong city