Research Prowess Cited In Foreign Broker Gains

Foreign brokerage houses are making rapid inroads into the domestic market.

According to a report released Monday by local securities companies, foreign brokerage firms accounted for about 10 percent of all shares traded in the local stock market in fiscal 2000.

Merrill Lynch's Seoul branch led the pack, responsible for 17 trillion won ($13.1 billion), or 1 percent of total stock transactions made through all brokerage companies including domestic players. The firm's performance is notable because its market share was similar to that of a medium-sized local securities company with some 30 branch offices.

Other top-ranking foreign stockbrokers such as UBS Warburg Securities, Credit Suisse First Boston, Morgan Stanley and Jardin Fleming also conducted more than 10 trillion won worth of transactions. "Leading foreign brokerage firms are making good use of their research abilities, and are getting ahead in the private banking business, too," said an official at a local securities company.

by Huh Eui-do