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Korea's custody market - is there room for new players?

11 July 2011

The Korean market is profitable for custodians that are already embedded, but barriers to entry mean that others are unlikely to follow

Read more: Korea custody Seoul

Korea has been much on the mind of the international political community in recent years, and not without good reason. North and South have been at loggerheads ever since the 1950-53 war which ended in a truce, not peace. That conflict reared its ugly head once more when North Korea sank a South Korean warship in March last year, and again in November when the South’s Yeonpyeong island was shelled in a dispute over weapons testing.

In 2011 the two foes have kept their distance from each other, but the tension remains keenly felt on both sides. With North Korea harbouring nuclear ambitions, local politics is set to remain a decisive factor for the foreseeable future. But for investors, both local and international, the Korean market is becoming more, not less, attractive.

Local retail investors and pension funds dominate the main securities markets where investment trusts and mutual...