South Korean asset management companies collectively earned record net profit in the first three months, according to data released by the state watchdog Financial Supervisory Service on Tuesday.

The combined net profit of the 328 domestic asset management firms came in at 615 billion won ($551.74 million), up 424.7 percent from the same period last year. The growth is partly attributable to reduced operational costs, the FSS said.

The figure broke the previous record of 457.5 billion won posted in the third quarter last year, and had increased 52.6 percent from the fourth quarter last year. Of the asset management firms, 69, or 21 percent, posted an operating loss.

Their combined assets under management increased 40 trillion won to 1,237.8 trillion won, including 279.5 trillion won worth of public mutual funds and 443 trillion won worth of private mutual funds.

“The asset management segment has well performed so far, but the FSS will continue to keep a close eye on some companies with bad balance sheets in a bid to quickly respond to potential market downturns,” said an official from the FSS.

By Kim Young-won (wone0102@heraldcorp.com)