Investment Advisory and Discretionary Firms' Fee Revenue Surpasses 1 Trillion Won... 9.7% Increase in One Year

44 Companies Added in One Year, Totaling 724 Companies

Fee income of investment advisory and discretionary management firms increased by about 10% over the past year, reaching the 1 trillion won level.

On the 18th, the Financial Supervisory Service (FSS) announced through the '2023 Business Year Investment Advisory and Discretionary Management Business Performance' data that as of the end of March this year, the fee income of advisory and discretionary firms was 1.0195 trillion won (8.662 trillion won for dual-operation firms and 1.533 trillion won for specialized firms), an increase of 90.3 billion won (9.7%) compared to the end of March last year.

The FSS evaluated that the fee income scale of dual-operation investment advisory and discretionary firms (asset management companies, securities firms, banks) increased by 7.7% year-on-year, improving profitability related to advisory and discretionary services. Due to factors such as the rise in stock indices, the proportion of profitable specialized investment advisory and discretionary firms rose significantly to 53.7% (218 firms), indicating an improvement in the financial soundness of specialized firms.

The total contract amount was 719.1 trillion won, an increase of 8.3 trillion won (1.2%) compared to the same period last year. Advisory contract amount was 30.1 trillion won, a decrease of 5.8 trillion won (16.3%) compared to March last year, while discretionary contract amount was 689 trillion won, an increase of 14.1 trillion won (2.1%).

As of the end of March this year, there were a total of 724 investment advisory and discretionary firms (318 dual-operation firms and 406 specialized firms), an increase of 44 firms over the past year.