The South Korean asset management industry’s third-quarter net income fell 26.9% to 420.8 trillion won (US$301 billion) from 576 trillion won in the preceding three months as expenses increased and more asset managers suffered losses.
Operational expenses rose to 706.4 billion won from 693.9 billion won in the second quarter, and 652.4 billion won in the third quarter of 2023.
The Financial Supervisory Service (FSS) published the industry data in a quarterly report on November 25. The figures cover the 483 registered asset management firms in Korea.
The industry’s securities investments incurred a loss of 30.4 billion won, wiping out almost one-quarter of the 116 billion won income earned in the second quarter.
Over half or 54% of asset managers reported net losses, up from 43.7% in the second quarter, and the industry’s return on equity fell to 10.8% from 15.2%.
In spite of lower profits, mutual fund and discretionary account assets climbed to 1,633 trillion won from 1,612 trillion won in the second quarter.