South Korean fund managers’ net income soared over five-fold in the first quarter as their revenue from fees and commissions rose and their asset size increased, according to figures from the country’s financial regulator.
Net income of the 328 registered fund managers in January through March was 615 billion won (US$553.5 million), up from 117.2 billion won in the first three months of 2020 when there were 300 managers, the Financial Supervisory Service (FSS) says in a quarterly report on June 8.
Revenue from management fees and commissions increased to 924.8 billion won from 706.2 billion won previously, and assets under management rose 7.7% year-on-year to 1,237 trillion won.
The report does not provide any analysis. But the improved numbers underscore Korea’s recovery from the coronavirus crisis. The economy rebounded 1.8% in the first quarter after shrinking 1.4% a year ago, its worst contraction in a decade.
The number of profitable fund managers more than doubled.
The FSS figures show that 259 of the 328 managers, or nearly 80%, made profits in the first quarter compared to 113 out of 300, or 38%, in the same period last year.
Their overall average return on equity was 25.7%, sharply up from 6.1% a year ago.
