Merrill Lynch Adds $250 Million to Seoul Branch, Doubling Capital Base

Merrill Lynch, a foreign investment bank, is expanding its business in South Korea after injecting several hundred billion won in additional funds into its Seoul branch, an unusual move among foreign securities firms that typically keep local capital relatively flat.
 
According to the financial investment industry on May 5, Merrill Lynch’s Seoul branch recently received a $250 million remittance (about 370 billion won) from its headquarters to bolster operating funds. As a result, its equity capital is expected to rise from about 360 billion won at the end of last year to the 700 billion won range, more than doubling. The increase would place Merrill Lynch among the top tier by equity capital among the 12 foreign securities firms with branches in South Korea. As of the end of last year, the largest was Morgan Stanley’s Seoul branch at 655.5 billion won.
 
Foreign securities firms generally remit most profits to their headquarters as dividends, limiting growth in local equity capital. JPMorgan’s Seoul branch, for example, sent 133 billion won of last year’s profit to its headquarters. Against that backdrop, Merrill Lynch’s capital expansion is seen as atypical.
 
Over the past five years, cases in which major foreign securities branches more than doubled equity capital have been rare. Goldman Sachs’ Seoul branch increased capital from 396 billion won at the end of 2021 to 604.6 billion won at the end of 2025, up about 52%, while Morgan Stanley’s Seoul branch rose about 32% from 497.4 billion won to 655.5 billion won. Other firms posted only modest gains of around 10% or saw declines over the period.
 
The latest funding appears tied to improving results and a strong domestic stock market. Merrill Lynch’s Seoul branch posted net profit of 76.1 billion won last year, up from 38.8 billion won in 2024. The broader outlook for foreign securities firms has also improved: combined net profit for the 12 foreign branches operating in South Korea rose from 256 billion won in 2023 to 322.9 billion won in 2024 and 427.4 billion won last year.
 
Industry officials view the move as a signal of expanded operations, as rising corporate valuations in a buoyant market lift revenue opportunities such as mergers and acquisitions and advisory work. “With the recent market rally, demand for IB, M&A and advisory services is increasing at the same time,” a financial investment industry official said. “The larger the equity capital, the more a firm can participate in big deals or expand trading, so it appears they moved early to strengthen capital.”