Seoul, Jan 27 South Korea's major brokerage houses are expected to have racked up decent earnings last year on the back of increased trading of overseas stocks, industry sources said on Monday.
According to the data from market tracker FnGuide, the combined operating income of the country's big five brokerage houses in 2024 is estimated at 5.66 trillion won ($3.94 billion), sharply up from the previous year's 3.37 trillion won, reports Yonhap news agency.
Korea Investment & Securities Co. is expected to have posted the biggest operating income of 1.27 trillion won, followed by Samsung Securities Co. with 1.19 trillion won, Mirae Asset & Securities Co. 1.15 trillion won, Kiwoom Securities Co. 1.23 trillion won and NH Investment & Securities Co. 923 billion won, the data showed.
Their stellar performances were partly driven by commission fees from increased trading of overseas stocks by retail investors.
The average daily turnover of the local stock market stood at 19.1 trillion won last year, up 2 percent from a year earlier, while that for overseas stocks by Koreans jumped 84 percent on-year to $53.1 billion.
Also, local securities firms took less reserve last year than a year earlier against exposure to risky construction development projects, helping jack up their bottom lines.
This year, their performances are widely expected to improve further on the back of expected monetary easing cycles and reduced risks against shaky construction projects.
Meanwhile, the Korea International Trade Association (KITA) plans to establish a new overseas office in Johannesburg this year to bolster trade and economic ties with African nations, KITA officials said on Monday.
The announcement to establish the office in the populous South African city was made during a general meeting of the Seoul members of KITA's South Korea-Africa economic cooperation committee held in Seoul on Wednesday.
The Johannesburg office will serve as the association's first dedicated presence on the African continent, aiming to provide on-the-ground support for South Korean companies seeking to enter African markets.
It will also facilitate closer cooperation with African economic organizations and help identify opportunities in key sectors, such as agriculture, energy and infrastructure.
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