Key facts
- South Korean asset managers' combined net income was 1.47 trillion won in Q1.
- This is an increase from 767 billion won in the prior quarter.
- The rise was driven by higher commission income.
- Operating income increased by 54% to 1.35 trillion won.
- Return on equity was 31% as of March.
- Total assets under management reached 2,355.7 trillion won.
Asset management firms in South Korea experienced a substantial increase in profitability during the first quarter, with their combined net income nearly doubling compared to the previous quarter. This growth was primarily fueled by a significant rise in commission income.
The total net income for these firms reached 1.47 trillion won (approximately $959 million) in the January-March period, a marked improvement from the 767 billion won reported in the preceding quarter. The companies' combined operating income also saw a substantial boost, climbing by 54 percent to 1.35 trillion won.
Commission income, a key driver of this profitability surge, increased by 9.5 percent quarter-on-quarter. The sector's return-on-equity, a crucial measure of profitability, stood at 31 percent by the end of March, indicating a strong performance. Total assets under management also grew, reaching 2,355.7 trillion won as of the end of the first quarter. The Financial Supervisory Service reported that there were 511 asset management firms operating in South Korea as of the same period.