Major Brokerage Firms Anticipated to Achieve Solid Earnings in 2024

Synopsis

South Korea's top brokerage firms are expected to report strong earnings in 2024, driven by a rise in overseas stock trading and reduced reserves against risky projects. The combined operating income is projected at 5.66 trillion won, significantly higher than last year.

Key Takeaways

Strong earnings forecast for 2024
Increased trading of overseas stocks
Top five firms' earnings rising to 5.66 trillion won
Commission fees boosting profits
KITA to open Johannesburg office

Seoul, Jan 27 (NationPress) South Korea's prominent brokerage firms are projected to have generated substantial profits last year, largely due to a surge in trading activities of international stocks, as revealed by industry sources on Monday.

As per data from market analytics provider FnGuide, the total operating income of the nation’s top five brokerage firms for 2024 is forecasted to reach 5.66 trillion won ($3.94 billion), a significant increase from last year’s 3.37 trillion won, according to Yonhap news agency.

Korea Investment & Securities Co. is predicted to report the highest operating income at 1.27 trillion won, followed closely by Samsung Securities Co. with 1.19 trillion won, Mirae Asset & Securities Co. at 1.15 trillion won, Kiwoom Securities Co. with 1.23 trillion won, and NH Investment & Securities Co. at 923 billion won, as per the data.

Their impressive results were partially fueled by commission fees from the rise in overseas stock trading among retail investors.

Last year, the average daily turnover in the local stock market was 19.1 trillion won, marking a 2 percent increase compared to the previous year, while trading of international stocks by Koreans soared 84 percent year-on-year to $53.1 billion.

Additionally, local securities companies allocated less reserve last year compared to the prior year, decreasing their exposure to risky construction development projects and thereby boosting their financial outcomes.

This year, their performance is widely anticipated to enhance further, driven by expected monetary easing cycles and diminished risks related to unstable construction projects.

In a related development, the Korea International Trade Association (KITA) has announced plans to open a new overseas office in Johannesburg this year to strengthen trade and economic connections with African nations, KITA officials disclosed on Monday.

The decision to set up the office in the bustling South African city was made public during a general assembly of Seoul members of KITA’s South Korea-Africa economic cooperation committee held in Seoul on Wednesday.

The Johannesburg office will mark the association's first dedicated presence in Africa, aimed at providing local support for South Korean businesses aiming to penetrate African markets.

Furthermore, it will promote closer collaboration with African economic entities and help identify prospects in key sectors like agriculture, energy, and infrastructure.