Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Kiwoom Securities reports double-digit earnings growth
Kiwoom Securities headquarters in the financial district of Yeouido in Seoul / Yonhap
By Lee Min-hyung
By Lee Min-hyung
Kiwoom Securities reported a net profit growth of 70.5 percent in the first half of 2023 from a year ago, on rising stock trading commission revenues driven by retail investors snapping up secondary battery shares.
The brokerage reported an operating profit of 569.7 billion won ($434.22 million) for the first six months combined, up 67.3 percent from a year earlier. The firm also chalked up a net profit of 425.9 billion won during the same period.
The company set aside a bad debt allowance of 70 billion won in the second half due to its involvement in a stock manipulation scandal, but this was offset by a recovery in stock market sentiment represented by the robust battery rally.
The daily average stock transaction volume reached 24.3 trillion won in the second half, up 24 percent from the previous year. Kiwoom's stock commission profit also increased to 95.1 billion won between April and June from a year earlier.
But the brokerage's overseas stock trading commission is on the decline. Kiwoom said it chalked up a profit of 30.7 billion won in the second quarter of last year, but the figure fell 18 percent to 25.2 billion won in the same period of this year.
“Kiwoom Securities included a bad debt allowance of 70 billion won for its involvement in alleged unfair sales practices in the second quarter earnings, but the risk has been offset by retail investors' aggressive stock trading activities,” KB Securities analyst Kang Seung-geon said.