Fidelity International Downsizes Its Operation in S. Korea
Fidelity International has decided to downsize its asset management business in S. Korea, i.e. Fidelity Investments Asset Management Korea. Since Fidelity International broke into the S. Korean market back in 2004, it has established itself as one of the leading foreign asset management firms in the country.
The Financial News, a local newspaper, has recently reported, “Fidelity Investments Asset Management Korea is reported to have restructured its workforce: employees were either laid off or transferred to its locations in Hong Kong, Singapore, etc.”
Though Fidelity Investments Asset Management Korea folds, Fidelity International plans to retain its sales operation in the market as various foreign funds are trading on S. Korea’s stock exchange.
In 2015, Fidelity Investments Asset Management Korea already cut about 14 percent of its workforce in a restructuring.
Fidelity Investments Asset Management Korea said however, "We will continue to focus on bringing global capabilities to the Korean market to ensure that we provide good value for our clients and to remain competitive in the prevailing market environment."
An industry insider said, “Fidelity’s recent decision to close its asset management business in S. Korea could trigger an exodus of foreign asset management companies, which have also been hesitantly considering either shutting down or slim down their operations in S. Korea.”