Domestic securities firms generated 2.5 times more revenue from overseas operations compared to the previous year.
The Financial Supervisory Service noted on the 19th that 15 domestic securities firms operated 70 local subsidiaries overseas last year, earning a net profit of $272.2 million (approximately 400.2 billion won). This figure represents a 155.5% increase over the previous year's net profit of $165 million (approximately 156.6 billion won).
As of the end of last year, domestic securities firms had 70 local subsidiaries and 10 offices across 15 countries. By country, the Asia region, including China, Singapore, and Indonesia, had the highest number at 58, followed by 14 in the United States, 6 in the United Kingdom, and 1 each in Greece and Brazil.
The increase in net profit from local subsidiaries appears to be due to gains in trading activities, including bond brokerage and exchange-traded funds (ETFs). However, of the 70 local subsidiaries, 38 reported profits while 32 incurred losses.
Regionally, profits were reported in 10 of the 15 countries where securities firms have established operations, including the United States, Hong Kong, and Vietnam, while losses were noted in 5 countries such as the United Kingdom and Thailand. Although the profitable countries were somewhat concentrated, there is a diversification of entry points, including recent expansions into emerging markets like India and the establishment of new offices in developed countries.
Excluding the 10 offices established for market research purposes, the total assets of the 70 local subsidiaries amounted to $34.28 billion (approximately 50.4 trillion won), representing a 9.7% decrease from $37.98 billion (approximately 55.8 trillion won) at the end of the previous year.
The FSS stated, "We will actively support overseas expansion by listening to the difficulties of securities firms and the suggestions from financial authorities," adding, "As external volatility increases, leading to greater uncertainty in operations, we will continuously monitor potential risks."