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South Korean securities sector financial growth

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2026-10-08 02:00 UTC → 2026-10-09 01:49 UTC · added ~~removed~~

South Korean securities firms have demonstrated significant financial growth and revenue diversification. Early reports indicated a shift toward investment banking, asset management, and retail services. By the first half of 2026, the top 10 major brokerage firms reported a combined pre-tax profit of 9.88 trillion won, a 78.2% increase from the previous year. This surge led to several firms, including Korea Investment & Securities, Kiwoom Securities, and Samsung Securities, joining the ‘1 trillion won pre-tax profit club’. In the latter half of 2026, asset management companies achieved record-breaking net profits in the second quarter, driven by stock market performance and the ETF market, though a performance gap emerged where 42.9% of companies operated at a loss. By the reporting period covering the first half of the year, South Korean financial holding companies reached a record-high combined net profit of 17.6 trillion won, a 13.7% increase year-on-year. This was largely driven by the financial investment sector, which saw a 72.8% surge in net profit to 5.1 trillion won due to stock market activity and foreign exchange gains. This growth shifted the profit contribution balance, as the banking sector’s profit declined by 7.9%, reducing its share of total profits from 59.0% to 47.1%. However, asset quality indicators showed signs of deterioration. The non-performing loan (NPL) ratio rose to 1.03%, and the loan loss provision ratio fell to 96.5%, dropping below the 100% threshold. The Financial Supervisory Service has noted the need for enhanced risk management and internal controls due to increased exposure to market-sensitive sectors. Recent data also highlights a shift in capital circulation. Non-financial corporations reached a record net fund management of 67.1 trillion won, driven by semiconductor industry profits.

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