Brokerage Houses' Overseas Branches See Sharp Earnings Boost in 2024

The headquarters of the Financial Supervisory Service in Yeouido, which is located in western Seoul, [YONHAP]

Data revealed on Monday that overseas operations of Korean securities firms experienced a significant surge in net income last year due to heightened trading activities.

Last year, the combined net income from overseas operations amounted to $272 million, which is almost triple what it was at $106 million the prior year, as reported by the Financial Supervisory Service (FSS) data.

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• South Korea's major banks report highest-ever profit margins despite governmental interest rate limits.

• Brokerage companies experience a surge in net profits during 2024 due to commissions and trading revenues.

• South Korea's leading brokerage firms are anticipated to report solid profits for 2024 due to heightened international equity trading activities.

Last year, the earnings from international branches made up 7.8 percent of the total net profits of the brokerage firms.

By the end of 2024, 15 domestic securities firms were active across 15 nations via 70 subsidiaries and 10 branches, with 58 located in Asia and 14 in the United States.

As of the end of 2024, the total assets held by international operations amounted to $34.28 billion, marking a decline of $3.7 billion or approximately 9.7% compared to the previous year, as reported by the FSS.

According to the financial regulator, securities companies reported net profits in 10 nations such as the United States and Vietnam, whereas they experienced net losses in three countries like Britain and Thailand.

Yonhap

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