Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Korean brokerages look abroad, court foreign investors for growth
High-rise buildings line the Han River at southern Seoul's Yeouido. gettyimagesbank
By Lee Yeon-woo
Korean brokerages are stepping up their overseas expansion and efforts to attract foreign investors as they seek to reduce their dependence on domestic trading income and sustain profits, industry officials said Monday.
Meritz Securities, the only one of Korea's 10 largest brokerages without an overseas presence, is reportedly preparing to establish its first foreign subsidiary in Hong Kong. The unit will source investment opportunities in bonds and alternative assets, supporting the group's investment banking business.
Mirae Asset Securities and Toss Securities are also considering acquisitions of local brokerages in Japan, where a resurgent equity market has drawn increasing interest from global investors.
NH Investment & Securities, meanwhile, acquired a roughly 32 percent stake in Choice Equity Broking, the securities arm of India's Choice Group, on July 9, becoming the third Korean brokerage to enter the Indian market. The transaction remains subject to regulatory approval.
As of 2025, 16 Korean securities firms were operating a total of 93 overseas offices across 15 countries, according to the Financial Supervisory Service.
The push abroad comes after major Korean brokerages posted record earnings in the first half, helped by a strong rally in domestic equities. The combined second-quarter net profit of the country's 10 largest brokerages rose to 5.94 trillion won ($4.3 billion) on a consolidated basis, up 37 percent from the previous quarter and 141 percent from a year earlier.
With trading-related income providing much of the boost, brokerages also overtook banks for the first time to become the most profitable segment of Korea's financial industry.
But the outlook has become less certain as the market rally has lost momentum. Average daily trading value on the KOSPI rose to 50.2 trillion won in May and 50.3 trillion won in June before falling to 36.9 trillion won in July, according to the Korea Exchange.
"Brokerages broadly benefited from the stock market boom in the first half, but the second half will be a real test of their underlying strength," one industry official said. "The challenge now is to protect earnings and build more stable revenue streams."
Brokerages are also seeking to diversify their overseas customer base, traditionally dominated by institutional investors, by attracting retail investors through omnibus accounts.
Hana Securities and Hong Kong-based Emperor Securities opened Korea's first omnibus account for foreign investors in August last year, with trading beginning two months later. Hana has since extended the service to Japan's Capital Partners Securities and, most recently, Hong Kong-based investment platform Futu Securities.
Samsung Securities launched a similar service in May through a partnership with Interactive Brokers, a Nasdaq-listed brokerage offering access to more than 170 markets worldwide.
Other brokerages are following. Kiwoom Securities signed a strategic partnership with Webull in February, while Shinhan Securities reached an agreement with GF Securities in Hong Kong. Mirae Asset Securities followed in June with a deal with Singapore-based UOB Kay Hian.