On April 24, Fund Online Korea, the operating body of Fund Supermarket kicked off the service through the website. (image: Tribune.com/Creative Commons)
SEOUL, Korea, April 25, 2014 (Korea Bizwire) – Online shopping mall for funds called “Fund Supermarket” has officially got under sail. Since it is the first online store for funds which has been supported by the financial investment industry including the government authorities, it is predicted to bring crustal movements to the conventional fund sales market in Korea which was mostly driven to seek profit than to benefit the investors.
On April 24, Fund Online Korea, the operating body of Fund Supermarket kicked off the service through the website. The business has seemed to be off to a promising start with almost 1,700 new accounts on the opening day.
Although it is not the first online store for funds considering that several securities firms have been providing services online for quite some time, the new website has won the title of “the First Fund Supermarket” due to its public nature achieved by joint participation of the relevant agencies and the industry.
In fact, the shareholders include 41 asset management companies, four credit rating agencies, and two government agencies. The two largest shareholders are Korea Securities Depository (4.58%) and Korea Securities Finance Corporation (4.58%) to secure publicness and independence of the operation, free from falling under the control of certain private enterprises.
Fund Online Korea CEO Cha Moon-hyun said, “Fund Supermarket is a quasi-public online market brought on by request of investors and the market.” The CEO has expressed the company’s determined will to meeting the need of times and fulfilling its social duties.
Fund Supermarket has its advantages and disadvantages. The greatest advantage the website offers is that the sales are generated unbiased by intervention of finance companies. Thanks to the objectiveness, the product lineup is much longer as well.
At Fund Supermarket, one can subscribe to approximately 900 domestic and overseas funds offered by 52 different asset management companies. Also the services are offered at lower sales commissions. For equity funds, the sales commission is 0.35 percent at Fund Supermarket, which is about one third of the existing average rate of 0.81 percent.
On the other hand, Fund Supermarket has a weakness in consulting services such as cash management service. Its customer service center is focused on how to use the website and does not offer professional fund investment consulting.
Written by Robin Ko0 (linguistkoo@koreabizwire.com)
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