Major securities firms in South Korea achieved record results in the first half of this year, driven by a booming stock market. The net profit of the top 10 brokerages surpassed 10 trillion won for the first time, fueled by increased trading volumes and brokerage revenues.
According to the Financial Supervisory Service's electronic disclosure system on August 16, the combined net profit of the top 10 securities firms (Mirae Asset, Korea Investment, Kiwoom, NH Investment, Samsung, KB, Shinhan, Meritz, Daishin, and Hana Securities) reached 10.2697 trillion won for the first half of the year. This marks an increase of approximately 129% compared to 4.4858 trillion won during the same period last year.
In just the first half of this year, these firms have already exceeded their total net profit from the previous year, which was 9.9102 trillion won. They earned about 1.26 trillion won more than last year in just six months. Three firms—Mirae Asset Securities, Korea Investment Securities, and Kiwoom Securities—each reported net profits exceeding 1 trillion won, while eight out of the ten firms set new records for half-year performance.
Mirae Asset Securities reported the highest net profit of 2.9072 trillion won, a 338% increase from the same period last year. In the second quarter alone, it earned 1.9052 trillion won, marking two consecutive quarters with net profits exceeding 1 trillion won. The significant growth was attributed to the expansion of its brokerage and wealth management (WM) divisions, along with gains from investments in companies like SpaceX.
“While these results are historic, it is important to note that a significant portion of the net profit comes from investment asset valuation gains, so we need to distinguish between recurring earnings and one-time factors,” said Lim Hee-yeon, a researcher at Shinhan Investment Corp. “For the time being, fluctuations in SpaceX's stock price will inevitably increase profit volatility.”
Korea Investment Securities followed with a net profit of 1.7311 trillion won for the first half, achieving record results across its key business segments, including brokerage, WM, investment banking (IB), and asset management. Kiwoom Securities also joined the '1 trillion club' with a net profit of 1.1580 trillion won.
NH Investment Securities and Samsung Securities reported net profits close to 1 trillion won, with NH Investment Securities at 965.2 billion won and Samsung Securities at 939.1 billion won. KB Securities reported 801 billion won, Shinhan Investment Securities 577.7 billion won, Meritz Securities 514 billion won, Daishin Securities 403.3 billion won, and Hana Securities 273.1 billion won.
The key driver behind the strong performance of these brokerages was the brokerage segment. The domestic stock market showed strong performance in the first half of the year, leading to a significant increase in stock trading and corresponding growth in brokerage commission revenues. The combined brokerage commission revenue of the five major firms—Mirae Asset, Korea Investment, Samsung, NH Investment, and Kiwoom—totaled 4.1988 trillion won, a 174.9% increase from the same period last year.
In addition to brokerage, growth in WM, IB, and asset management segments also supported the improvement in overall performance. While there are differences based on each firm's business portfolio, the stock market boom has increased customer assets and expanded revenues from financial product sales and asset management, enhancing the overall revenue base.
Looking ahead to the second half of the year, the flow of trading volumes in the domestic stock market is expected to be a key variable influencing the performance of securities firms. Given the sharp increase in brokerage revenues in the first half, a slowdown in trading volume growth could limit the expansion of related revenues. Therefore, the profitability of non-brokerage segments such as WM and IB, as well as diversification of business portfolios, are anticipated to play crucial roles in determining the performance of individual securities firms.
* This article has been translated by AI.
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