Life Asset Management, led by 'first-generation value investor' Lee Chae-won, received public fund management license from the Financial Services Commission recently. The approval enables the firm to expand its engagement-based hedge fund strategies, previously validated in the private market, to retail investors and the retirement pension market. Life Asset Management relaunched as a specialized private fund manager in June 2021, and completed the licensing process five months after applying in February this year.
Life Asset Management Joins Public Fund Market After FSC Approval
According to the financial investment industry on the 20th, Life Asset Management recently received public collective investment business license from the Financial Services Commission. The approval came five years after the firm relaunched as a specialized private fund manager in June 2021, and five months after submitting the application in February this year. Life Asset Management now joins the ranks of hedge fund houses that have converted to public fund managers, following Timefolio, VIP, DS, and The J.
Life Asset Management's assets under management (AUM) stood at 3.164 trillion won as of the Q1 business report this year. Following the stock market rise, AUM reportedly reached the 5 trillion won range.
Life Asset Management Reports 38.2 Billion Won Net Profit in Q1 2025
Life Asset Management's performance ranks among the top tier of asset management firms. In Q1 this year alone, the company recorded operating revenue of 61.4 billion won and operating profit of 50.3 billion won. Net profit reached 38.2 billion won, surpassing last year's annual net profit of 26.4 billion won in just one quarter.
The strong performance, combined with the success of other hedge funds that converted to public fund managers, supports the outlook for Life Asset Management's settlement in the public market. Timefolio Asset Management attracted over 10 trillion won in the active ETF market alone after obtaining public fund license. DS Asset Management and The J Asset Management recently entered the active ETF market and are expanding their lineups. VIP Asset Management settled as a public fund with its 'Korean-style value investing' approach.
Life Asset Management has indirect public market track record. The 'ACE Life Asset Shareholder Value Active' ETF, managed by Korea Investment Trust Management with Life Asset Management's advisory, recorded a one-year return of 126.17%. Life Asset Management was also selected as a GP for the National Growth Fund, gaining industry-wide recognition for its track record.
Life Asset Management Drives Corporate Changes Through Shareholder Engagement
Life Asset Management's investment philosophy, which advocates 'friendly shareholder activism,' has gained market support by driving meaningful corporate changes. Recent cases involving BNK Financial Group and KCC exemplify this approach.
Life Asset Management requested BNK Financial Group to introduce a shareholder-recommended outside director system and restricted stock units (RSU). BNK filled over half of outside director positions with shareholder-recommended personnel at the 2026 shareholders' meeting.
In the KCC case, Life Asset Management addressed capital allocation efficiency. When KCC pursued issuing exchangeable bonds (EB) based on treasury shares, Life Asset Management urged the company to prioritize utilizing its 3 trillion won range of non-core assets (Samsung C&T shares) that exceed market capitalization. As market opposition and Life Asset Management's recommendations aligned, KCC withdrew its treasury share EB issuance plan.
Life Asset Management Plans Private Re-Indirect Funds and Retirement Pension Products
Life Asset Management plans to launch private re-indirect funds and retirement pension funds as its first public products. Private re-indirect funds are structured to collect funds from general investors in public fund form, then invest those funds into private funds. This structure essentially opens Life Asset Management's hedge fund strategies, validated in the private market, to the public.
Direct exchange-traded fund (ETF) management is now possible, but the company has no plans to enter that market for the time being.
A senior Life Asset Management official stated, "The core purpose is to provide more people with opportunities to participate in public funds with hedge fund styles employed by private funds." The official added, "We plan to establish and manage retirement pension funds suitable for long-term value investing."
FAQ
Q: What license did Life Asset Management receive recently?
A: Life Asset Management received public fund management license from the Financial Services Commission recently, five months after applying in February this year.
Q: What were Life Asset Management's financial results in Q1 2025?
A: Life Asset Management recorded operating revenue of 61.4 billion won, operating profit of 50.3 billion won, and net profit of 38.2 billion won in Q1 2025, surpassing its 2024 annual net profit of 26.4 billion won in one quarter.
Q: What products does Life Asset Management plan to launch as a public fund manager?
A: Life Asset Management plans to launch private re-indirect funds and retirement pension funds as its first public products, with no immediate plans to enter the ETF market.
