Tax rules may hinder ETF growth in Korea, says Samsung AM

Having recently launched the first inverse and leveraged exchange-traded funds in Korea, Samsung Asset Management worries that tax treatment will hinder ETF market growth in the country. From July, foreign and alternative product-based ETFs will face disadvantageous tax treatment compared to ETFs with Korean underlyings, says Bae Jae-Kyu, chief investment officer of Samsung AM's ETF management division. ETFs are treated as regular funds in Korea and, as such, foreign-asset ETFs are su…