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Mutual funds lag as ETF fee war deepens for asset managers

South Korea's exchange-traded fund market has entered an era of more than 300 trillion won in net assets, but asset managers are growing more concerned as fee cuts intensify. More than 60 percent of net inflows into domestic public funds in 2025 went to ETFs, as active equity funds fell out of favor. Large firms have lowered total fees to around 0.01 percent, squeezing margins. Authorities and the industry have introduced listed share classes of public funds to improve access, while experts call for more differentiated portfolio strategies.