Capital flows in South Korean and foreign equity funds will be slow until early next year and gradually improve beginning in the second - half of 2010 , according to the projection by Meritz Securities on December 7 . Park Hyun - chul , a fund analyst at Meritz Securities , stated in his projection on the fund market in 2010 and investment strategy that there still remains callable capital in South Korean and foreign equity funds waiting to be redeemed once the stock market gains some ground . “ Net inflows of capital will gradually continue posting a growth rate of 2 . 5 percent per year with investors ’ confidence recovering in the economy and stock market in the second half of next year , ” and added , “ However , an increase in interest rates and the growing attraction of stock investment could trigger an outflow of capital in bond funds . But the overall Asset Under Management ( AUM ) is to dip by around one percent , ” said Park . He went on to say that an exterior growth rate will slow down as the proportion of AUM ( 28 . 2 percent ) and equity funds ( 35 percent ) to the gross domestic product ( GDP ) already neared the level of advanced countries . However , anticipation on the economic recovery and stock market , prolonged low - interest rate , entry into ageing society and long - term investment culture will continue to pull long - term growth of the Korean and foreign equity funds . “ A growing number of individual investors have been redeeming equities coming into the second half of the year , which was prompted by a market imbalance due to the concentration of capital in a particular section , ” and added , “ Uncertainties in the Korean equity funds will be cleared in 2010 , ” said Park on the forecast for the South Korean equity fund . [ Yen - mi Hong / edited by Jae - yoon Jung ] [ ⓒ Maeil Business Newspaper & mk . co . kr , All rights reserved ]