As the stock market records an unprecedented rally, a growing number of citizens are visiting brokerage firms. The photo shows people entering a securities company branch in Seoul. (Yonhap)
SEOUL, Feb. 10 (Korea Bizwire) — South Korea’s stock market rally is delivering windfall gains to investors betting on brokerage firms, with securities-focused exchange-traded funds posting returns of more than 50 percent since the start of the year.
According to data compiled by Yonhap Infomax on Tuesday, the TIGER Securities ETF has gained 52.1 percent so far this year. HANARO Securities High Dividend TOP Plus has risen 53.9 percent, while KODEX Securities is up 52.9 percent.
The surge has drawn fresh retail money into the sector. Since January, investors have purchased a net 17 billion won of TIGER Securities, 5.7 billion won of HANARO’s fund and 20.8 billion won of KODEX Securities, reflecting growing confidence that brokerage earnings will benefit from elevated trading activity.
Expectations are being reinforced by robust results. Mirae Asset Securities reported operating profit of 1.915 trillion won last year, up 61.2 percent from a year earlier and nearing the 2 trillion won mark. Samsung Securities and NH Investment & Securities each posted operating profit above 1 trillion won, joining what is colloquially known as the “1 trillion won club.”
Korea Investment & Securities has yet to release full-year results, but through the third quarter had already recorded 1.983 trillion won in operating profit, putting it on track to comfortably exceed 2 trillion won for the year.
A view of the Yeouido financial district, often referred to as Korea’s “Wall Street.” (Yonhap)
The momentum has carried into 2026. After the benchmark Kospi index broke through the 5,000 level last month, daily trading volumes surged, raising expectations of higher brokerage commissions.
Average daily turnover in January reached about 42 trillion won on the Korea Exchange and 20.4 trillion won on alternative trading platform Nextrade, pushing the combined total above 62 trillion won — an 89 percent jump from the previous month.
Client deposits rose roughly 20 percent month-on-month, while margin loan balances increased about 10 percent, signaling heightened investor participation.
“Regardless of the direction of interest rates, the key variable for brokerage earnings is trading volume,” said Ko Yeon-su, an analyst at Samsung Securities. “Considering both domestic and overseas stock turnover, industry conditions remain solid.”
With trading activity at record levels and earnings momentum intact, securities firms have emerged as some of the biggest beneficiaries of South Korea’s ongoing bull market — and investors are following suit.
Ashley Song (ashley@koreabizwire.com)
