[Manbo Jeongdam] Seo Yuseok, Association President: "Hoping to Be a Stepping Stone for Capital Markets... For People's Happiness and Wealthy Retirement"

Interview with Seo Yuseok, Chairman of the Korea Financial Investment Association
To juniors: "Taking one more step of effort will eventually make a difference"
"Didim Fund will support the nation's retirement"
"Capital market has grown a lot but still has a long way to go... must compete globally"

Seo Yuseok, Chairman of the Korea Financial Investment Association, is walking through the Open Songhyeon Green Plaza in Jongno-gu, Seoul, and giving an interview to Asia Economy. Photo by Heo Younghan

There is a person who started as a junior employee, became a CEO, and now serves as the chairman representing the industry. This is the story of Seo Yu-seok, chairman of the Korea Financial Investment Association, known as the 'Myth of the Salaryman.' Chairman Seo entered the industry for the most basic reason: 'because it pays well.' However, he is now passionately working harder than anyone else for the development of the capital market, captivated by the 'dynamism' and 'growth potential' of the financial investment industry.

He said impressively with affection, "The more I immerse myself in the industry, the more deeply I feel that the capital market is the heart and blood vessels of our economy, directly performing efficient allocation of funds as a financial market." He added, "The capital market is where all changes in the world begin and a place with infinite growth potential." Asia Economy walked around the Jongno area with him, sharing memories as a financial investor and discussing the challenges facing the financial investment industry.

The Space That Accompanied Chairman Seo Yu-seok’s Youth: Jongno

Meeting Chairman Seo Yu-seok at the Open Songhyeon Green Plaza, a fairly spacious and open area filled with various plants including wildflowers, he said, "When I worked at a branch, I used to walk around Gyeongbokgung Palace or stop by the Gyeongin Art Museum for a cup of tea to clear my cluttered mind." This park was formerly used as the residence of the Industrial Bank of Japan during the Japanese colonial period, then as accommodation for the U.S. after liberation, and later as the U.S. Embassy residence. Recently, Seoul City opened it as a park.

The area near Open Songhyeon Green Plaza is a place that accompanied Chairman Seo’s youth. Seo joined Mirae Asset Securities as an early member in 1999 and was in charge of preparing to open the Myeongdong branch. As the branch manager of Myeongdong, despite being a latecomer, he attracted funds to the nearby commercial district, surpassing established players. He went through many trials and tribulations to gain trust from demanding customers and often walked alone to organize his thoughts.

He recalled, "There is a long-established Chinese restaurant called 'Wonheung (元興)' that my colleagues and I used to visit occasionally when working around Gwanghwamun." The Chinese restaurant, famous for its fried meat and jjambbong (spicy seafood noodle soup), brought to mind a passionate securitiesman who used to unwind with branch staff over drinks after a hard day.

Seo Yuseok, Chairman of the Korea Financial Investment Association, is walking along the flower path at Open Songhyeon Green Plaza in Jongno-gu, Seoul. Photo by Heo Younghan

After achieving outstanding results as a branch manager and rising steadily, he was appointed president of Mirae Asset Global Investments in 2016. The headquarters of Mirae Asset Global Investments is located in Grand Seoul in Jongno-gu, just a 15-minute walk from Open Songhyeon Green Plaza. He said, "Recently, I stopped by the area with association staff and revisited the Chinese restaurant, recalling old memories. Like its name 'Wonheung' (meaning 'prosper as the best'), it was still bustling with people."

Seo Yu-seok was born in 1962. He graduated from Paichai High School and Korea University with a degree in economics and earned a master's degree in financial management from Korea University. He joined Korea Investment Trust in 1988 and held various positions including head of marketing at Mirae Asset Securities, head of retail business, and head of retirement pension division. From 2010 to 2012, he served as president of Mirae Asset MAPS Asset Management. He then led marketing and ETF divisions at Mirae Asset Global Investments and served as CEO from 2016 to 2021. He is considered a first-generation leader in Korea’s ETF market. Since 2023, he has been serving as the 6th chairman of the Korea Financial Investment Association.

From a Junior Employee to the Voice of the Financial Investment Industry: "Communication and Effort"

After chatting at Open Songhyeon Green Plaza, we moved to the Gyeongin Art Museum. Located in Insadong, the museum was surprisingly tranquil despite being in a bustling area, preserving the traditional charm of a hanok (Korean traditional house). It was exactly as Chairman Seo described?a place where one can briefly relax amidst repetitive daily life.

Having risen from a junior employee to association chairman, he emphasizes to juniors the importance of 'One Step Further.' He explained, "If you make small efforts to improve your skills, it will eventually make a difference. You must have an attitude that quickly adapts to change, endless passion, take ownership of your life, do your best, and maintain enthusiasm toward your goals."

Along with effort, he advocates the importance of communication to juniors. He said, "Communication is not just about conveying information but about understanding each other's thoughts and feelings and forming empathy. Like a grandfather humbly talking to his grandson without any pretense, true communication happens when you listen to your colleagues with an open heart."

He also quoted a passage from author Choi Jae-cheon’s book 'Sukron.' He emphasized, "Sukron is not about 'who is right?' but about 'what is right?' It is a process of discussing sufficiently, contemplating differences, and refining them. Most problems in a world where diverse people live stem from a lack of communication."

Didim Fund and Value-Up: "Ultimately the Path to the People’s Happiness"

Having lived nearly 40 years as a financial investor, the thing Chairman Seo is most focused on since becoming chairman is the 'Didim Fund.' The Didim Fund was created to help citizens enjoy a peaceful life after retirement. Twenty-five asset management companies will launch it under the common brand 'Didim Fund' on the 25th of this month.

- The launch of the 'Didim Fund,' which you have devoted much effort to since being appointed chairman of the Korea Financial Investment Association, is just around the corner.

"While working in the financial investment industry, I realized that managing and operating retirement pensions with highly volatile products is important, but I also felt the need for stable management. The Didim Fund may be bland compared to other aggressive funds in terms of returns, but it is designed to help office workers build sufficient assets by the time they retire in a stable manner."

The Didim Fund uses an asset allocation strategy similar to the diversified investment approach of pension funds and mutual aid associations. It was created to discover balanced funds effective for long-term pension investment and to help workers compare and select pension products. It aims for more stable long-term performance compared to Target Date Funds (TDF). He explained that the biggest advantage of launching the Didim Fund is 'expanding investors’ choices.'

Seo Yu-seok, Chairman of the Korea Financial Investment Association, is being interviewed by Asia Economy outdoors at an art museum in Jongno-gu, Seoul. Photo by Heo Young-han

He hopes the Didim Fund will become a product that can stand shoulder to shoulder with TDFs in the retirement pension market. He emphasized, "The 25 asset management companies launching the Didim Fund must grow it to increase investors’ choices. Through this, I hope the Didim Fund grows like TDFs, so people perceive TDFs as 'aggressive' and Didim Funds as 'stable.'"

He is also requesting the Korea Exchange to lower the hurdles so that small and medium-sized companies can participate in the listing of public funds. Listed public funds are traded on the exchange like ETFs and can be bought and sold like stocks. They have the advantage of shorter subscription and redemption procedures and periods compared to general fund products.

He said, "We are continuously discussing with the exchange to ensure there are no hurdles for small and medium-sized asset management companies to participate. We are considering measures such as allowing products initially set as A-class (offline subscription) or C-class (online subscription) to convert to X-class (listed public funds) once the assets under management increase, or lowering the initial asset threshold."

Alongside this, he is also focused on capital market value-up. The Korea Financial Investment Association launched the 'Capital Market Value-Up Task Force' for the overall development of the capital market. Recently, they invited Yoshio Horimoto, Director General of the Japanese Financial Services Agency, to hold an international seminar on capital market value-up.

He learned from Japan’s example that the most important factor is the 'control tower.' He said, "Japanese Prime Minister Fumio Kishida attended most meetings of the 'New Capitalism Realization Headquarters.' He listens personally and gives direct instructions, actively leading the efforts. In overseas investor relations (IR), he proactively promotes based on materials from the committee." He added, "The government’s strong push ultimately led to results for the Japanese people."

ISA Reform and Financial Investment Income Tax: "I Hope They Think Progressively"

- Recently, the biggest issues in the financial investment industry seem to be the reform of the Individual Savings Account (ISA) and the financial investment income tax.

"I hope the ISA is innovatively reformed, like Japan’s NISA (Nippon Individual Savings Account). In Japan, profits generated from transactions within NISA accounts are tax-exempt."

In other words, the ISA amendment is considered somewhat insufficient. Currently, the annual contribution limit and tax-exempt limit for ISA are 20 million KRW and 2 million KRW, respectively. However, if the amendment passes, these will more than double to 40 million KRW and 5 million KRW. Recently, a bill proposing a maximum contribution limit of 300 million KRW and unlimited tax exemption was also introduced.

He also expressed the opinion that a Junior ISA should be introduced. Japan and the UK operate Junior ISAs for minors. In Japan, capital gains and dividend income from listed stocks and investment trusts are tax-exempt under Junior ISA. He said, "Since those under 18 cannot manage their own accounts, it would be good if Junior ISA could provide funds to prepare for future social needs such as tuition. Tax exemption on gifts and other benefits are necessary," he suggested.

Seo Yuseok, Chairman of the Korea Financial Investment Association, is being interviewed by Asia Economy at a tea house in Jongno-gu, Seoul. Photo by Heo Younghan

"Regarding the original financial investment income tax plan, there are parts related to taxation that are difficult to accept, so revisions seem necessary."

He expressed the opinion that a quick decision on the financial investment income tax by the political sphere is desirable. However, since there are issues with the taxation part in the current original plan, those must be resolved.

He said, "There are pros and cons even among our member companies regarding the financial investment income tax, so it is hard to say which side is right. But if it goes as originally planned, dividends from funds would be treated as dividend income regardless of the source, including stock trading gains and valuation differences, which would cause problems because it would be subject to both withholding tax and comprehensive taxation."

- In the financial investment industry, securities firms are seeing the emergence of mega investment banks (IBs), and asset management companies’ ETF market size has exceeded 150 trillion KRW, showing rapid growth. What is your view on this?

"I still think there is a long way to go. In terms of Korean industries, top-tier companies like Samsung Electronics, SK Hynix in semiconductors, Hyundai Motor in automobiles, and defense compete on par with global players. But financial companies are not there yet. I think it is a matter of people or institutional issues. I believe much support is needed for the financial investment industry to reach the global top tier."

He also offered affectionate advice to the asset management industry, where he was involved until recently. He said, "Competition arising from the growth of the ETF market is very natural. But companies must create unique new items of their own. If they just follow already commercialized products, it will be hard to win." He added, "Consumer protection is, of course, very important."

Do Not Invest with Borrowed Money... Working for Comfortable Retirement in Korea

He urged investors not to invest with borrowed money and to keep some of their investment funds in cash. He explained, "If you invest with borrowed money, you become impatient and cannot endure it. Even if you have investment funds, you should avoid pouring them all in at once. In stock investment, an upward cycle inevitably comes, but if you pour all your money in before that, you cannot enjoy that period. So, you should keep 30% of your investment funds in cash."

He especially advised against being lured by promises like 'guaranteed 000% returns.' Chairman Seo said, "You must remember that if the return is higher than bank deposit interest rates, you can definitely incur losses. Emphasizing such returns means there are hidden risks."

His term has about one year and three months left. Until the end of his term, he plans to contemplate and find solutions to make citizens’ retirement more comfortable. Chairman Seo said, "I have always envied how American workers become millionaires by the time they retire through stock investments and pensions. Korea still seems far from that, but I hope the Didim Fund and others will help make citizens’ retirement more comfortable."

He continued, "Even if not immediately, I believe current efforts are important foundations for future growth and will eventually bear fruit. Like a stepping stone, I will continue to think about how to help citizens prepare for retirement."

Interview by Lee Seon-ae, Head of Securities Capital Markets Department

Compiled by Yoo Hyun-seok and Park Hyung-soo