SEOUL, March 8 (Korea Bizwire) – Asset management firms in South Korea reaped record profits last year, as investors poured money into private equity funds amid low interest rates, data showed Wednesday
Assets controlled by 165 management companies reached 907 trillion won (US$788 billion) as of the end of 2016, up 10.8 percent from the previous year, according to the Financial Supervisory Service (FSS).
It marks the first time that the total exceeded the 900 trillion won mark.
Fund assets increased 11.3 percent on-year to 469 trillion won, of which privately offered funds swelled 24.6 percent to 250 trillion won. Publicly offered funds decreased from 221 trillion won to 220 trillion won.
“When it comes to privately offered funds, bond and real estate funds grew by 13.8 trillion won and 10.5 trillion won, respectively, and special assets funds increased by 7.9 trillion won,” the watchdog said.
The aggregate net income of the asset management companies also jumped 34.7 percent on-year to an all-time high of 667.4 billion won in the year.