[INTERVIEW] Franklin Templeton Korea CEO aims to create most localized asset management firm (2024)

Empowered by 'gentle charisma,' Kim Tae-hee guides firm to greater growth in domestic market

By Lee Yeon-woo

The rise in direct investments in foreign stocks and ETFs over the past few years has prompted many foreign asset management companies to withdraw from Korea. Unfazed by this trend, Franklin Templeton Investment Advisors Korea is committed to becoming the most localized firm, drawing on its 25 years of operating experience in Korea.

Leading this initiative is its CEO Kim Tae-hee, a seasoned professional in the institutional business within the finance sector, boasting over 25 years of experience. She assumed the position in May 2022 following her roles at MSCI Korea and Citibank Korea.

"Franklin Templeton is an asset management firm that deeply understands domestic investors. For the last 25 years, our firm has been expanding our business steadily in Korea. Looking ahead, we aim to develop strategies that are both adaptable yet principled, tailored to the evolving conditions of the domestic market and investor needs," Kim said in a recent written interview with The Korea Times.

Kim mentioned that these efforts will be supported by offering clients a diverse range of products, including investment advisory services, ESG initiatives and digital solutions. This approach is intended to strengthen Franklin Templeton's position as a comprehensive provider of overseas investment solutions, while becoming the most trusted management company among investors.

Below is an excerpt of The Korea Times' interview with Kim. It has been edited for clarity and readability.

Q. You graduated in communication but pursued a career in finance. What motivated this shift? Please share the key challenges you faced in succeeding in this field.

A. Back then, foreign-based financial institutions in Korea were more welcoming environments for female college graduates, offering them less discriminatory treatment and providing good salaries and welfare systems. I was involved in diverse tasks from developing global financial market reports to customer IR and marketing. These tasks seemed well-suited to my abilities.

It was common for female employees to quit their jobs after getting married. The prevailing attitude was, 'what's the point in training female employees? They will leave after a few years.' As a result, female employees often faced less challenging tasks compared to their male counterparts. However, I was determined to become a professional financier. With a strong sense of duty and responsibility, I have worked diligently for 30 years and earned a degree in MBA. Overcoming these challenges in the sector has been a significant part of my journey.

Q. What are the main strategies you've implemented since your appointment?

A. Since my appointment, I've primarily focused on expanding our overseas asset business. Franklin Templeton Investment Advisors Korea, the first foreign asset management firm in Korea since 1997, has significantly expanded its investor base. Our current assets under management are around $9 billion, with a goal to more than double this within five years.

Secondly, we aim to strengthen long-term relationships and cooperation with our domestic customers. We opened a liaison office in Jeonju, North Jeolla Province in 2023, marking ourselves as the first foreign asset management firm to establish a liaison office in the region. The National Pension Service has been our long-term customer for more than 20 years. With this opening, we also plan to contribute to the development of the local community. Last November, Franklin Templeton Korea conducted a special class on global investment at Jeonbuk National University. Plans are underway to offer more such classes at local universities.

Q. What values do you prioritize most as a leader?

A. I think leadership is influence and power to move others. Like the conductor of an orchestra, you have to be able to listen to various sounds of all members and bring out their potential to harmonize the appropriate pitch. In order to do so, it is important to build trust with employees through interactive communication.

It is often believed that strength and power are linked with charisma. However, I believe that warm words can lead employees, even more than authority and toughness. True leadership lies in earning their hearts and trust through sincerity. Moreover, isn't a leader who attracts everyone with a friendly and approachable demeanor considered the best kind of leader?

Q. Why the financial industry should value diversity and inclusiveness (D&I)? Have you witnessed any developments in the industry?

Diverse consumer demands and rapidly advancing technology are challenges faced by financial firms. To adapt, establishing a D&I culture internally is essential. If employees are confined to behaviors that align only with a dominant culture, it limits their ability to fully utilize their unique capabilities. Recognizing and leveraging everyone’s inherent qualities as strengths can significantly enhance innovation and productivity within an organization.

Many countries have expanded D&I through various institutions and initiatives. For example, Korea also has passed legislation requiring listed companies with assets exceeding 2 trillion won to appoint at least one female member to their management team. Thus, progress is being made gradually.

I believe that women are socially conditioned to be more empathetic than men, but empathy is a skill that both genders can nurture. It’s noteworthy that two Korean women have been listed in Forbes' The World's 100 Most Powerful Women. This gives me hope and expectation that more Korean women will emerge as global leaders in the future.

Q. How does Franklin Templeton encourage female leadership?

A. Franklin Templeton's routinely assesses the representation of women in leadership roles and actively encourages the participation of female employees in such positions. It provides various opportunities for women through policies such as family care leave and flexible work arrangements. For instance, Our Women@FT Business Resource Group supports women in their career development, serving as a source of support for employees looking for inspiration and encouragement. Additionally, all employees are required to have a specific DE&I performance goal and corresponding action plans. This approach, in my opinion, distinguishes Franklin Templeton from other financial firms in Korea.

Q. Please introduce projects you are currently focusing on.

A. An asset manager should offer solutions tailored to customers, whose needs change based on market conditions. Even though Franklin Templeton is known as an active house that manages traditional asset classes, our group also has acquired various alternative management companies such as secondary, private debt, real estate and hedge funds. Our strength lies in operating portfolios that encompass both traditional and alternative assets through dynamic asset allocation. We will continue to develop and provide tailored solutions for both institutional investors and retail investors.

Q. Any advice for juniors who aspire to become financial specialists?

A. Everyone has their strengths, but talent alone isn't sufficient. Talent shines when fueled by passion, which comes from doing what you love. I'd like to tell juniors to reflect on their desires and aspirations. I encourage them to pursue work that they genuinely enjoy and can dedicate themselves to with passion.