Bo-eun leads the digital content team. She has covered foreign affairs, North Korea, tech, economy and gender issues at The Korea Times. She did a short stint at the South China Morning Post in Hong Kong, where she obtained a new perspective on news production and life. Small sources of joy for her are lounging in the sun, having a good latte and swimming.
What will Toss' brokerage look like?
By Kim Bo-eun
By Kim Bo-eun
As Toss' brokerage unit nears its launch, attention is growing over its business model and the services the brokerage will offer.
The Financial Services Commission recently approved Toss Securities' launch and the firm is planning to begin operations this month.
This will be the first local securities firm to be set up here in 12 years.
Toss, Korea's first fintech unicorn, is a mobile platform offering more than 40 financial services.
A securities firm is the latest addition to its line of affiliates. Toss has an insurance sales unit and an affiliate that processes payments, and is also preparing to launch a digital bank next year.
Toss is expected to launch its brokerage business as soon as possible, given the surge in individuals who joined the local stock market as investors this year, amid low interest rates and high liquidity following an expansionary monetary policy.
According to Toss, the securities firm will focus on offering brokerage services in trading stocks for retail investors.
The brokerage has been referred to by industry sources as resembling the mobile app-based financial services company Robinhood Securities based in the U.S. The firm, of which 80 percent of its customers are under 35, offers commission-free trading for stocks.
Most Toss users are also in the same age group ― among its 18 million customers, 60 percent are in their 20s and 30s.
A Toss official said its brokerage will charge fees, but the lowest on the market.
He said Toss' existing app will incorporate a simplified mobile trading system to offer an easier and more convenient means to invest in stocks.
“We will offer a user experience that will facilitate investment in stocks for the millennial generation,” the official said.
He said Toss Securities saw an opportunity because a large portion of the younger generation were still not investing in stocks.
“About 6 million people here are investing in stocks and those in their 20s and 30s only account for 25 percent,” the official said. “Toss users in this age group add up to 10 million. Our user base is perhaps the greatest advantage we have.”
This is why Toss has designed for the investments to take place on its existing app.
Meanwhile, KakaoPay, which is considered Toss' rival, launched a brokerage of its own after acquiring Baro Investment & Securities last February. Toss said its model differed from that of KakaoPay Securities, which has yet to launch a mobile trading system.