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Korea's major brokerage houses expected to have posted decent earnings in 2024 on increased overseas stock trading

Published: 27 Jan. 2025, 10:29

The Korea Investment & Securities headquarters in Yeongdeungpo District, western Seoul [KOREA INVESTMENT & SECURITIES]

Korea's major brokerage houses are expected to have racked up decent earnings last year on the back of increased trading of overseas stocks, industry sources said Monday.

According to the data from market tracker FnGuide, the combined operating income of the country's big five brokerage houses in 2024 is estimated at 5.66 trillion won ($3.94 billion), sharply up from the previous year's 3.37 trillion won.

Korea Investment & Securities is expected to have posted the biggest operating income of 1.27 trillion won, followed by Samsung Securities with 1.19 trillion won, Mirae Asset & Securities 1.15 trillion won, Kiwoom Securities 1.23 trillion won and NH Investment & Securities 923 billion won, the data showed.

Their stellar performances were partly driven by commission fees from increased trading of overseas stocks by retail investors.

The average daily turnover of the local stock market stood at 19.1 trillion won last year, up 2 percent from a year earlier, while that for overseas stocks by Koreans jumped 84 percent on-year to $53.1 billion.

Also, local securities firms took less reserve last year than a year earlier against exposure to risky construction development projects, helping jack up their bottom lines.

This year, their performances are widely expected to improve further on the back of expected monetary easing cycles and reduced risks against shaky construction projects.

Yonhap