Record Profits for Korean Asset Managers Driven by ETFs, But Structural Concerns Remain
South Korean asset management firms reported record-setting results last year, buoyed by robust growth in ETFs and a strong equity market. According to the Financial Supervisory Service, total net profit increased 66.5% year-over-year to KRW 3 trillion, while operating profit surged 81.1% to KRW 3.2 trillion. Total assets under management (AUM) grew by 17% to KRW 1,937.3 trillion, with ETF assets rising 71.1%, underscoring the dominant role of ETFs in fund flows and market expansion.
Fee income and return on equity (ROE) saw notable increases, and over two-thirds of asset managers reported profits, signaling stronger industry profitability and financial soundness. However, this impressive performance also raised concerns over market structure, as large firms benefit disproportionately from the ETF boom while small- and mid-sized private fund managers lag behind; notably, 36.7% of smaller private management companies reported losses, highlighting increasing polarization within the industry.
While positive factors such as stock market growth, increased ETF inflows, and higher fund custody volumes are driving the sector forward, excessive reliance on ETFs and the concentration of assets among major players pose potential risks to the market’s long-term stability. The Financial Supervisory Service noted its commitment to monitoring fund market trends amid global volatility and pledged further regulatory reforms to support balanced industry growth.
Related News
Inflow of Funds into ETFs... Asset Management Firms Surpass 3 Trillion Won in Net Income Last Year - Kyunghyang ShinmunLast year's net income of asset management companies exceeded 3 trillion won, marking a record high. This was driven by increased investment in exchange-traded funds (ETFs) due to the booming domestic stock market. According to the '2025 Asset Management Companies' Business Performance (Provisional)' report released by the Financial Supervisory Service on the 30th, last year's net income of asset management companies surged 66.5% (1.2033 trillion won) from the previous year to 3.0132 trillion won, with ETFs being a key asset in the management portfolio...
Asset Management Companies Achieve Record Net Profit of 3 Trillion Won Last Year Due to ETF Boom - Kyunghyang ShinmunThe net profit of asset management companies surpassed 3 trillion won last year, setting a new record. This was driven by an increase in investments in exchange-traded funds (ETFs) due to the booming domestic stock market. According to the '2025 Asset Management Company Operating Performance (Provisional)' report released by the Financial Supervisory Service on the 30th, the net profit of asset management companies last year surged 66.5% (1.2033 trillion won) from the previous year to reach 3.0132 trillion won. Assets managed focused on ETFs...
Asset Management Firms' Net Profit Surpasses 3 Trillion Won...Performance Driven by ETFs, Increasing Concentration Concerns - Invest ChosunInvest Chosun
Asset Managers' Net Profit at 3 Trillion… Amid ETF Boom, 1 in 3 Private Asset Managers in Red - Kuki NewsLast year, the domestic asset management industry recorded the highest ever in both managed assets and net profits, but the chronic issue of 'polarization' within the industry has deepened further.
Asset Management Firms Surpass 3 Trillion Won in Net Profit Last Year, Marking a Record High with 66.5% Increase Due to Strong ETF Performance - Business PostAsset Management Firms Surpass 3 Trillion Won in Net Profit Last Year, Marking a Record High with 66.5% Increase Due to Strong ETF Performance
Asset Management Firms Reach Record High, Surpassing 3 Trillion Won in Net Profit Due to ETF Boom - Metro NewspaperLast year, domestic asset management companies achieved record performances, driven by a booming stock market and the growth of exchange-traded funds (ETFs). According to the '2025 Asset Management Company Operating Performance (Provisional)' released by the Financial Supervisory Service on the 30th, the net profit of asset management companies last year increased by 66.5% compared to the previous year, reaching 3 trillion 132 billion won. Operations
조선일보20 hours ago
Asset Management Firms Break 3 Trillion Profits, Reaching Record High Amid Stock Market Boom...ETF Investments Surge - Chosun IlboAsset management firms surpass 3 trillion won in net profit, marking the highest in history as ETF investments surge during last year's stock market boom. The net profit surpassed 3 trillion won, an increase of over 1 trillion won compared to the previous year, setting a new record. Reported by the Financial Supervisory Service on the 30th.
뉴스핌20 hours ago
Asset Management Firms' Assets Exceed 1,937 Trillion Last Year… Net Profit Up 66% to Record High - NewsPim[Seoul=NewsPim] Reporter Yang Tae-hoon = Last year, the operating assets of asset management companies surpassed 1,937 trillion won, marking a record high, while net profit also surged 66.5% year-on-year to 3 trillion 132 billion won. On the 30th, the Financial Supervisory Service (hereinafter FSS) reported the operating assets of 507 asset management companies nationwide as of the end of last year.
Asset management companies achieve record net income of 3 trillion won last year, up 66% YoYLast year, asset management companies achieved a record net income. This was due to a surge in assets under management, primarily driven by ETFs, thanks to the rise in domestic stock indices. According to the Financial Supervisory Service's preliminary '2025 Asset Management Company Business Performance' report released on the 30th, last year's total net income of asset management companies was 3...
"Record High Profit"… Asset Management Companies Benefit from ETF Boom - DailyanThanks to the stock market boom, last year's asset management industry performance significantly improved. According to the Financial Supervisory Service's report on '2025 Asset Management Company Business Performance' released on the 30th, the assets under management (fund custody and investment discretion contracts) at the end of last year stood at 1,937.3 trillion won. This is an increase of 280.9 trillion won (17.0%) compared to 1,656.4 trillion won at the end of the previous year. Fund custody was 1,283.2 trillion won.
Asset Management Companies' Net Profit Increased by 66.5% Last Year… Fund Market Growth Continues - Seoul Economic DailyLast year, domestic asset management companies recorded double-digit growth rates in both assets under management (AUM) and net profit, achieving the highest performance ever. This was due to a large inflow of funds, particularly centered on exchange-traded funds (ETFs), driven by the stock index rise. This is based on the 'Provisional 2025 Asset Management Company Business Performance' report announced by the Financial Supervisory Service on the 30th.