Four out of 10 asset management firms in Korea in the red as of Sept

2017.12.04 16:55:39 | 2017.12.04 16:56:01
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Four out of 10 asset management companies active in South Korea are in the red due to over-competition in the heavily congested industry.

According to Financial Supervisory Service on Monday, 82 asset managers, or 42.1 percent of the total 195 firms, reported losses in the July-September period, increasing 19 percent from the second quarter. The number of asset management firms surged to 195 from 165 at the end of last year.

Combined net income of asset managers in Korea reached 170.3 billion won ($156.4 million), down 8 percent from a quarter ago and 29.7 percent from a year ago. Operating profit rose 6.1 percent to 206.3 billion won, while non-operating profit plunged 57.5 percent.

Their revenue from management fees increased 2.9 percent to 526.8 billion won a quarter ago with income from operating funds adding 1.9 percent to 396.3 billion won and trust commission up 5.7 percent to 130.5 billion won. Their combined assets under management reached 950 trillion won, up 1.0 percent from the end of June.

The FSC said it closely monitor new entries and other poor-performing managers to prevent the spread of risk on the market.

By Jin Young-tae and Lee Ha-yeon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]

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