Samsung Investment Trust Management, the largest fund management company in South Korea, aims to open an office in Hong Kong. This is its first move in a campaign to establish itself as a regional player, says Um Tae-jong, chief executive officer and chief operating officer for global investments and financial products in Seoul. The firm has spent two years preparing for this by first building up its domestic business according to international best practices. This more conservative approach stands in contrast to the Korean industry’s current star, MiraeAsset, which has over the past two years opened investment offices in Hong Kong, Singapore, Mumbai and London. Mirae’s growth has come at a time when Korean investors have switched to international investments. In particular, its locally domiciled China fund, managed from its Hong Kong and Singapore desks, has been very successful. Since the end of last year, Mirae has seen its assets under management grow 50 per cent. With W53 trillion ($0.06 trillion) won in discretionary accounts, Samsung remains the Korean industry’s overall biggest fund house, with a total of W74 trillion to Mirae’s W37 trillion (including its discretionary business). But Samsung’s mutual funds have barely grown in AUM this year, and much of its overall business is in low-margin bond and money-market funds. Only about 10 per cent of Samsung’s business is in equities, compared to 67 per cent for Mirae. The firm has applied to the Hong Kong Securities and Futures Commission for licenses in advisory services and investment management, and once approved, will establish an investment management and marketing presence in Hong Kong. It plans to hire entirely from the local talent pool, although the office chief executive will transfer from Samsung’s Seoul headquarters.