Korea Investment Management and Korea Investment Value Asset Management will begin the partitioning-merger process to restructure their business.
Korea Investment Holdings said in a filing that on the 27th its second-tier subsidiaries, Korea Investment Management and Korea Investment Value Asset Management, each held board meetings and approved signing a partitioning-merger agreement.
Accordingly, Korea Investment Management's listed securities fund and money market fund (MMF) business unit will be spun off and absorbed into Korea Investment Value Asset Management through a merger.
After the partitioning-merger, Korea Investment Management will handle passive management such as ETFs, while Korea Investment Value Asset Management is expected to focus its capabilities on the active management institutional sector.
The two companies plan to hold an extraordinary shareholders meeting on Sept. 11 to vote on the partitioning-merger approval agenda. The final partitioning-merger date is Jan. 1 next year.
Korea Investment Holdings said that even after the partitioning-merger, Korea Investment Management and Korea Investment Value Asset Management will remain 100% subsidiaries of Korea Investment & Securities Co., with no change.