Domestic securities firms have increased their equity capital by over 10 trillion won in the first half of 2026. This growth is attributed to the expansion of corporate finance (IB) and venture capital investments, as major firms seek to bolster their capital amid favorable market conditions.
According to data compiled by the financial investment industry on August 18, the equity capital of 37 domestic securities firms rose from 95.8474 trillion won at the end of December 2025 to 106.2814 trillion won by the end of June 2026, marking an increase of 10.434 trillion won, or 10.9%, in just six months.
The increase was concentrated among larger firms. Korea Investment & Securities saw its equity capital grow from 11.1623 trillion won to 13.1922 trillion won, the largest increase recorded. NH Investment & Securities increased its capital from 8.6129 trillion won to 9.8181 trillion won, a rise of 1.2052 trillion won, while KB Securities grew from 6.6928 trillion won to 7.9784 trillion won, an increase of 1.2856 trillion won.
Additionally, Woori Investment & Securities raised its capital from 1.2024 trillion won to 2.2278 trillion won, climbing four spots in the rankings from 17th to 13th.
Meritz Securities and Kiwoom Securities also increased their equity capital by 814.3 billion won and 808.7 billion won, respectively. Hana Securities added 615.8 billion won, while Samsung Securities increased by 512.1 billion won. Mirae Asset Securities maintained its capital above the 10 trillion won mark, growing from 10.4139 trillion won to 10.5653 trillion won, an increase of 151.4 billion won.
The push for capital expansion among securities firms is crucial as the size of their equity capital directly influences their operational capabilities in key IB sectors such as corporate finance, acquisition finance, and alternative investments. Larger firms are better positioned to engage directly in significant initial public offerings (IPOs), acquisition financing, and alternative investments in real estate and infrastructure.
The competition for capital is intensifying, particularly for firms aiming to expand into large-scale IB operations. Firms with over 4 trillion won in equity capital can engage in issuance business, while those with over 8 trillion won can pursue integrated investment account (IMA) operations. IMAs allow securities firms to manage client funds for investments in corporate finance and venture capital, returning profits to clients.
Currently, five securities firms have equity capital exceeding 8 trillion won: Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, Meritz Securities, and Samsung Securities. KB Securities, with 7.9784 trillion won as of June, fell just 216 billion won short of the 8 trillion won threshold.
Industry experts believe that the competitive landscape in the securities sector is shifting from a focus on simple brokerage to a more capital-intensive IB competition, increasing the necessity for capital expansion. To participate in large deals, sufficient equity capital is essential, suggesting that the 'size competition' among securities firms will continue for the foreseeable future.
Meanwhile, smaller securities firms are also accelerating their capital expansion. Toss Securities increased its capital from 637.8 billion won at the end of last year to 872.8 billion won by June, a rise of 235 billion won. Kakao Pay Securities also grew from 204.6 billion won to 264 billion won, an increase of 59.4 billion won. Although these firms do not engage in IB activities, the booming stock market has heightened demand for credit loans, underscoring the need for capital expansion to support related operational limits.
Foreign securities firms have also expanded their equity capital. The 23 foreign firms operating in South Korea saw their capital increase from 5.7561 trillion won at the end of last year to 8.1622 trillion won by June, a rise of 2.4061 trillion won (41.8%). Goldman Sachs increased its capital from 603.3 billion won to 1.6288 trillion won, the largest increase, while Merrill Lynch grew from 360.6 billion won to 827.5 billion won, an increase of 466.9 billion won. Morgan Stanley raised its capital from 655.5 billion won to 1.089 trillion won, while Macquarie Securities also expanded its capital from 116.3 billion won to 207.3 billion won. Analysts suggest that the capital increases among foreign firms are primarily aimed at enhancing their capacity to expand operations in the thriving Korean market.
* This article has been translated by AI.
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