Alliance Bernstein, AIG to start S.Korea fund arms

SEOUL, July 25 (Reuters) - Alliance Bernstein Holdings LP (AB.N: Quote, Profile, Research, Stock Buzz) and AIG (AIG.N: Quote, Profile, Research, Stock Buzz) have won approval from the South Korean government to launch local asset management operations, the country's top financial regulator said Friday.

The Financial Services Commission said in a statement that it would allow the U.S-based companies to run asset management affiliates in South Korea, joining the likes of Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz), Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) and ING (ING.AS: Quote, Profile, Research, Stock Buzz).

Besides the two foreign companies, four local money managers also received the go-ahead from the regulatory agency.

The domestic asset management industry has been growing at a double digit rate, helped by retail money inflows to stock funds and looser regulations. The country's new mandatory corporate pension scheme has also been behind global asset managers' rush into the market.

(Reporting by Park Ju-min; Editing by Jonathan Hopfner)