South Korean securities firms report growth in IB and retail sectors

South Korean securities firms are reporting diverse growth patterns in their first half of 2024, with a notable shift toward diversifying revenue streams through investment banking (IB), asset management, and retail services.

Woori Investment & Securities, formed through a merger, reported a first-half operating profit of 29.4 billion won, surpassing its total 2023 annual profit. The firm saw a 206% year-on-year increase in IB commission income and is targeting a capital base of 3 trillion won by next year to qualify as a comprehensive financial investment business. The company is also expanding its retail client base, which reached 780,000 customers by June.

Meritz Securities reported a 15.9% increase in first-half net profit, reaching 514 billion won. While its second-quarter IB revenue declined by 21.9% due to increased provisioning and costs, the firm's overall performance was bolstered by strong growth in asset management and retail sectors. Meritz's retail client base grew by nearly 90% compared to the previous year, with customer deposit assets doubling to 71.7 trillion won.