What happens to my fund assets if the asset management company goes out of business?

Fund assets are held and administered not by the asset manager but by a trust company, and the law requires them to be kept separate from the trust company's own proprietary assets as well.

Securities and similar assets must be deposited with the Korea Securities Depository fund by fund, and the trust company may not be an affiliate of the asset manager that manages the fund. This segregated custody structure is meant to keep the asset manager's business problems from directly affecting fund assets, but it does not protect against investment losses.