Bull market raises hope for securities firms to join ‘W1 tril. club’ for 2nd straight year

Securities firms' headquarters are concentrated in Yeouido, Seoul's financial district, in this 2021 file photo. Yonhap

A bull market is fueling optimism for five major securities firms here to join the “1 trillion won club” in operating profit for the second straight year, according to industry officials on Monday.

The five — Mirae Asset Securities, Korea Investment & Securities, Samsung Securities, Kiwoom Securities and Meritz Securities — all surpassed 1 trillion won ($730.83 million) in operating profit last year after failing to do so in 2023, due to a downturn in the real estate market and other adverse economic effects.

The 2024 milestone was made possible by a U.S. stock market rally and a surge in Korean retail investors’ overseas stock trading.

Adding to the optimism for a revival of the “1 trillion won club” is the benchmark KOSPI recently surpassing the 3,000-point threshold for the first time since the COVID-19 era.

Market analysts’ forecast for Mirae Asset Securities’ 2025 operating profit averaged 1.24 trillion won on Monday, after the company’s operating profit tallied 1.64 trillion won in 2024.

The operating profit of Korea Investment & Securities is projected at 1.51 trillion won in 2025, compared with 1.25 trillion won the previous year.

In 2024, Samsung Securities reported 1.2 trillion won, Kiwoom Securities posted 1.11 trillion won, and Meritz Securities reported 1.05 trillion won. This year’s operating profit is likely to increase by 3 to 5 percent for each of the three companies, according to industry officials.

“For securities companies, increased trading volume translates to higher commission income, while margin lending leads to greater interest income and correspondingly raises expectations for stronger earnings,” an official said.

The official deemed KOSPI’s performance “strong enough” to offset concerns over negative impacts from the global tariff war initiated by U.S. President Donald Trump.

Some even predict that NH Investment & Securities, in addition to the five companies, has the potential to join the “1 trillion won club.” A brokerage arm of NH Financial Group, the company last joined the club in 2021.

It is estimated to reap 993.8 billion won in 2025 operating profits, but analysts reckon that the figure could go up in the second half of the year.