FSS: "Last Year Trust Companies' Assets Under Custody 1,223 Trillion Won... Up 4.9% YoY"

The Financial Supervisory Service announced on the 3rd that as of the end of last year, the total trust assets of trust companies (60 companies) amounted to 1,223.9 trillion KRW, an increase of 57.2 trillion KRW (4.9%) compared to the end of the previous year.

Banks accounted for 541.8 trillion KRW, securities companies 270.4 trillion KRW, and insurance companies 19.7 trillion KRW. Banks increased by 46.4 trillion KRW and insurance companies by 1.5 trillion KRW compared to the end of last year, while securities companies decreased by 40.3 trillion KRW.

Real estate trust companies recorded 390.2 trillion KRW, up 49.6 trillion KRW (14.5%) from the previous year-end, with specific money trusts accounting for the majority (97.4%) at 575.1 trillion KRW. Property trusts amounted to 623.7 trillion KRW, an increase of 52.8 trillion KRW compared to the previous year-end, mostly consisting of real estate trusts (459.9 trillion KRW) and monetary claim trusts (170.1 trillion KRW).

Trust fees totaled 2.2996 trillion KRW, an increase of 71.4 billion KRW (3.2%) from the previous year. Fees for specific money trusts were 1.1038 trillion KRW, down 65.9 billion KRW (5.6%) from a year earlier, while fees for real estate trusts were 1.0772 trillion KRW, up 137.3 billion KRW (14.6%) during the same period.

As of the end of last year, the total trust assets of integrated trust companies (banks, securities, insurance) were 831.9 trillion KRW, an increase of 7.6 trillion KRW (0.9%) from a year earlier. Banks and insurance saw significant increases in trust assets due to retirement pension trusts rising by 24.9 trillion KRW and 3.8 trillion KRW, respectively. Securities experienced a decline in trust assets as fixed deposit-type trusts decreased by about 47.1 trillion KRW. This was due to a bank deposit concentration phenomenon caused by the sharp interest rate hikes last year. As a result, securities companies saw a decrease in trust assets for the first time since they began trust operations in 2005.

Specialized real estate trust companies recorded 392 trillion KRW, up 49.6 trillion KRW from the previous year, due to the expansion of collateral trusts and managed land trusts. By industry share, banks held 44.3%, real estate trust companies 32%, securities 22.1%, and insurance 1.6%.

By trust property, compared to the end of last year, money trusts and property trusts increased by 4.2 trillion KRW and 52.8 trillion KRW, respectively. Within money trusts (590.4 trillion KRW), specific money trusts (575.1 trillion KRW) saw retirement pension trusts increase by 41.8 trillion KRW, but fixed deposit-type trusts decreased by 48.2 trillion KRW.

Trust fees amounted to 2.2996 trillion KRW, up 71.4 billion KRW (3.2%) from the previous year. Although banks’ stock-linked trusts and ETF trusts decreased by 96.2 billion KRW and 90.7 billion KRW respectively, retirement pension trusts of integrated trust companies increased by 73.2 billion KRW, and land trust fees of real estate trust companies increased by 162 billion KRW.

The Financial Supervisory Service stated, “We will strengthen asset-liability management (ALM) in trust asset operations to ensure that trust companies can smoothly respond to investors’ requests for termination of specific money trusts,” and added, “We will continuously monitor changes in land trust projects of real estate trust companies and prepare measures to strengthen risk management standards to enhance financial soundness.”

This content was produced with the assistance of AI translation services.