Korean asset managers post double-digit net income gain in 2020

2021.02.17 15:11:46 | 2021.02.17 18:08:13

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South Korean asset managers saw a 44 percent jump in net income in 2020 compared to the previous year thanks to stock frenzy that fueled the Kospi to new heights.

According to the Korea Financial Investment Association (KOFIA) on Wednesday, the combined operating profit of the country’s top 10 asset managers totaled 422.5 billion won ($381.9 million) last year, up 10.7 percent from 2019.

Their net profit soared 44 percent to 381.6 billion won.

A sharp increase in fees amid retail stock craze fattened asset managers. Samsung Asset Management raked in the largest operating profit of 95 billion won, up 27 percent on year.

Mirae Asset Global Investments earned 89.4 billion in operating profit, but its bottom line soared 95.8 percent to 256.3 billion won, almost equal to the combined net profit of eight other peers.

The company attributed the huge profit gain to the strong performance of global exchange-traded funds (ETFs) worth more than 65 trillion won, robust performance of overseas business and sharp increase in equity-method income. Its operating profit reached 89.4 billion won.

Samsung Asset Management, Hanwha Asset Management and KB Asset Management also posted double-digits gain in net profit, 30.5 percent, 21.2 percent and 20.9 percent, respectively.

Only two asset managers – Korea Investment Management and NH-Amundi Asset Management – recorded a decline in net profit compared to a year ago.

Shinyoung Asset Management, mid-sized asset manager not included in the top 10 list, saw a 69.3 percent jump in net income to 24 billion won.

The country’s top real estate asset manager IGIS Asset Management posted 59 billion won in net profit, soaring 97.8 percent from a year ago on skyrocketing housing prices.

By Pulse

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