Five major Korean securities firms are projected to surpass KRW 5 trillion in combined Q2 operating profit for the first time, according to consensus estimates released July 19. Mirae Asset Securities, Korea Financial Group, Samsung Securities, NH Investment & Securities, and Kiwoom Securities collectively posted consensus operating profit of KRW 5.1278 trillion and net profit of KRW 3.7482 trillion for Q2, representing year-over-year increases of 141.3% and 114.5% respectively. The surge was driven by a 67.8% KOSPI rally during Q2, with the index reaching an intraday record of 9385.59 on July 19, and average daily trading volume rising 27.6% quarter-over-quarter to KRW 55.926 trillion. Kang Seung-gun, KB Securities researcher, attributed the gains to increased brokerage revenue from both stock and ETF trading, alongside wealth management income from target-date financial product sales. The Korean securities industry operates under dual-listing regulations and a high interest rate environment that continue to constrain investment banking activity.
KOSPI Rally Drives Trading Volume 27.6% Higher in Q2
The KOSPI rose 67.8% during Q2 and reached an intraday high of 9385.59 on July 19, marking a historical peak for the index. Average daily trading volume across KOSPI and KOSDAQ markets increased to KRW 55.926 trillion in Q2, up 27.6% from KRW 43.826 trillion in Q1. On May 29, combined trading volume reached KRW 92.484 trillion. Kang Seung-gun stated, "Not only stock trading but also ETF trading volume increased significantly, which will have greatly boosted brokerage-related profits. Improved WM revenue from strong sales of target-date financial products is also expected to contribute to earnings improvement."
Mirae Asset Securities Projected to Reach KRW 2 Trillion Operating Profit
Mirae Asset Securities is forecast to achieve Q2 operating profit of KRW 2.0405 trillion, a 48.4% increase from Q1, becoming the first firm in the industry to surpass the KRW 2 trillion threshold. Samsung Securities is projected at KRW 693.1 billion, NH Investment & Securities at KRW 663.8 billion, and Kiwoom Securities at KRW 682.6 billion, all showing quarter-over-quarter growth. Korea Financial Group is estimated at KRW 1.0478 trillion, representing a 5.3% decrease from Q1.
SpaceX Valuation Gain Adds KRW 1.4699 Trillion to Mirae Asset Earnings
Park Hye-jin, Daishin Securities researcher, identified SpaceX valuation gains as the core driver of Mirae Asset's Q2 performance. "Based on the end-of-June closing price of $170, approximately KRW 1.4699 trillion in valuation gains are expected to be reflected," Park stated. Mirae Asset's overall product management profit is projected to reach KRW 1.78 trillion in Q2, an 18.4% increase from Q1.
Investment Banking Recovery Remains Limited Amid Regulatory Constraints
Seol Yong-jin, iM Securities researcher, noted constraints on IB activity. "With dual-listing regulations and the high interest rate environment continuing, both equity capital markets (ECM) and debt capital markets (DCM) are expected to remain sluggish. The real estate project financing (PF) market is also in a situation where recovery is still difficult to anticipate," Seol stated.
FAQ
What did Korean securities firms achieve in Q2 operating profit projections?
Five major Korean securities firms — Mirae Asset Securities, Korea Financial Group, Samsung Securities, NH Investment & Securities, and Kiwoom Securities — are projected to surpass KRW 5 trillion in combined Q2 operating profit for the first time, with consensus estimates showing KRW 5.1278 trillion in operating profit and KRW 3.7482 trillion in net profit.
Why did Mirae Asset Securities reach the KRW 2 trillion operating profit milestone?
Mirae Asset Securities is projected to achieve Q2 operating profit of KRW 2.0405 trillion, driven primarily by approximately KRW 1.4699 trillion in SpaceX valuation gains based on the end-of-June closing price of $170, alongside increased brokerage and wealth management revenue from the Q2 KOSPI rally.
How did KOSPI trading volume change in Q2?
Average daily trading volume across KOSPI and KOSDAQ markets increased 27.6% quarter-over-quarter to KRW 55.926 trillion in Q2, up from KRW 43.826 trillion in Q1, with the KOSPI rising 67.8% during the quarter and reaching an intraday record of 9385.59 on July 19.
