Korean brokerages near 'W2 tril. club' amid trading boom

Yeouido financial district in Seoul / gettyimagesbank

A growing number of Korean brokerages have surpassed 1 trillion won ($681.8 million) in operating profit this year, driven by a buoyant stock market and a surge in both retail and institutional trading, industry officials said Thursday.

The 2-trillion-won threshold is generating growing anticipation — a milestone that would mark a first for the sector.

Korea Investment & Securities reported its third-quarter operating profit soared 117.8 percent from a year earlier to 835.3 billion won. Cumulative profit for the first three quarters reached 1.98 trillion won, putting the firm on track to join the so-called "2 trillion won club" by year-end, according to analysts.

Other major firms are also seeing robust gains. Samsung Securities, Kiwoom Securities, Mirae Asset Securities, and NH Investment & Securities posted cumulative operating profits of 1 trillion won, 1.14 trillion won, 1.07 trillion won and 1 trillion won, respectively — already crossing the 1 trillion won threshold within three quarters.

Trading activity remains the primary driver. Average daily trading volume in the domestic stock market jumped to 40.3 trillion won in October, nearing the record set in January 2021 during a liquidity-fueled postpandemic rally. Overseas stock trading also hit a new high, with daily volume averaging 5.4 trillion won.

Stronger results were also supported by a rebound in investment banking and real estate finance. IPOs and rights offerings picked up, while easing concerns over project financing risks helped lift property-related profitability.

Adding to the sector’s momentum, regulators are also moving to expand the industry's scope. Financial authorities on Wednesday approved Integrated Managed Account licenses for Korea Investment & Securities and Mirae Asset Securities, clearing the way for broader wealth-management offerings across the sector.

Analysts expects the growth trajectory to carry into the fourth quarter.

"Rising nationwide interest in financial markets is expected to draw more domestic investors, reinforcing market-friendly policy support," said Ahn Young-joon, an analyst at Kiwoom Securities. "That momentum will boost the stock market, lift trading volumes, and ultimately sustain the multiple re-rating trend for brokerage firms."