Local brokerages made profits overseas last year

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Local brokerages made profits overseas last year

Overseas branches of Korean security firms reported net profits last year, driven by newly launched services and streamlined organizations, the financial watchdog said Thursday.

According to the data compiled by the Financial Supervisory Service (FSS), 48 branches set up and run by 15 local securities firms in foreign countries made $48 million won of aggregate net profit in 2017, a turnaround from net losses of $4.5 million in the previous year.

Their combined assets stood at $32.86 billion by the end of last year, growing more than 14-fold on-year. Their equity capital rose 37.2 percent on-year to $2.6 billion, while deficits surged over 77-fold to $30.26 billion.

The growth in net profits in 2017 is attributable to their expansion of business scopes by raising capital while shutting down loss-making branches, according to the FSS.

The security firms have been running 48 branches, as well as 15 overseas offices, in 13 countries across the globe. Over the past year, three branches and two offices were closed.

By country, the security firms enjoyed the largest amount of net profits in Hong Kong, at $40 million combined, followed by $9.4 million in Brazil, $8.2 million in Indonesia and $2 million in the U.K.

But they were in the red in four countries, with branches in the United States posting a deficit of $132 million, followed by $800,000 in China, $100,000 in India and $40,000 in Cambodia, according to the data.

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