Korean Securities Firms Expand Overseas to Cut Brokerage Reliance

Five major South Korean securities firms — Mirae Asset, NH Investment, Samsung, Kiwoom Securities, and Korea Financial Group — are expanding overseas operations as part of a strategic shift to reduce reliance on traditional brokerage revenue, according to data released on the 13th by financial information company FnGuide. The firms' combined Q2 consolidated net profit forecast this year reflects efforts to secure competitiveness through new revenue sources. The move marks a transition from dependence on discretionary trading commissions, historically the primary income driver for domestic securities companies.

Five Firms Report Q2 Profit Forecasts

FnGuide data shows the five securities firms' combined Q2 consolidated net profit forecast for this year, though the complete figure was not fully disclosed in available source materials. The forecast represents a collective performance metric as the firms pursue overseas business expansion strategies.

Strategic Shift from Brokerage Model

The securities firms are working to lower dependency on brokerage services, which have traditionally served as their primary revenue source. The strategy centers on creating new income streams and strengthening competitive positioning through international market entry. Industry analysts view the overseas expansion as a response to changing domestic market conditions and the need for diversified revenue models beyond discretionary trading commissions.

FAQ

Which Korean securities firms are expanding overseas operations? Five major firms — Mirae Asset, NH Investment, Samsung, Kiwoom Securities, and Korea Financial Group — are pursuing overseas business expansion according to FnGuide data released on the 13th.

Why are Korean securities firms reducing brokerage dependency? The firms aim to lower reliance on traditional discretionary trading commissions and create new revenue sources to secure competitiveness, as brokerage services have historically been their primary income driver but no longer provide sufficient growth potential in current market conditions.