South Korean asset managers hit record Q2 net profit

South Korean asset management companies achieved record-breaking net profits of 2.6889 trillion won in the second quarter, according to provisional data from the Financial Supervisory Service. This represents an 83.4% increase from the previous quarter and more than a threefold increase compared to the same period last year.

The surge in earnings was driven by rising stock market performance and the rapid expansion of the Exchange Traded Fund (ETF) market, which boosted both fund commission revenues and gains from proprietary securities investments. Total assets under management reached 2,777.5 trillion won, a significant increase from the previous quarter.

Despite the overall industry boom, a widening performance gap was observed. While 57.1% of the 513 asset management companies reported profits, the proportion of companies operating at a loss rose to 42.9%. This deficit was particularly concentrated among private equity managers, where the loss ratio climbed to 47.9%, compared to a lower deficit rate among public fund managers.