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Number of Foreign Securities Firms in Korea Reaches 40% of The Total
Number Vs. Weight
Number of Foreign Securities Firms in Korea Reaches 40% of The Total
  • By lsh
  • November 7, 2017, 00:30
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Foreign securities companies accounted for just around 10 percent of the industry's total workforce (eight percent) and paid-in capital (11 percent) despite their large number.
Foreign securities companies accounted for just around 10 percent of the industry's total workforce (eight percent) and paid-in capital (11 percent) despite their large number.

 

The number of foreign securities companies stood at 22 as of the end of September this year, accounting for 40 percent of the total 55 brokerage players in South Korea. Compared to 2010, the local industry added one foreign broker while eight local companies left the market.

According to the Financial Supervisory Service (FSS) on November 7, among 22 foreign securities companies, 11 were wholly owned subsidiaries including Nomura Financial Investment, Daiwa Securities, Deutsche Securities (Bank), Macquarie Securities and Yuanta Securities with the remainder being local branches such as UBS, Goldman Sachs, Merrill Lynch and JP Morgan

The number of foreign brokerage companies has been kept almost unchanged as the Asian companies, such as China Merchants Securities, japan-based Mizuho Securities and Taiwan-based Yuanta Securities, entered the Korean market while the US and British companies closed down their business here.

In June this year, China Merchants Securities established a wholly owned subsidiary here, becoming the first Chinese brokerage house. Three months later, Japan's Mizuho Securities opened its branch office in Seoul. In particular, Taiwan-based Yuanta Securities acquired Tongyang Securities, becoming the largest among the foreign brokerage players in the Korean market

In contrast, three local securities companies such as Apple Investment Securities and BNG were closed down due to poor performances during the last seven-year period, while four firms including Daewoo Securities, Hyundai Securities and Prudential Securities were merged into other local players. Seven years ago, securities companies operating in South Korea totaled 62 with the number of foreign players reaching 21.

The number of foreign securities companies stood at 22 as of the end of September this year, accounting for 40 percent of the total 55 brokerage players in South Korea. Compared to 2010, the local industry added one foreign broker while eight local companies left the market.

According to the Financial Supervisory Service (FSS) on November 7, among 22 foreign securities companies, 11 were wholly owned subsidiaries including Nomura Financial Investment, Daiwa Securities, Deutsche Securities (Bank), Macquarie Securities and Yuanta Securities with the remainder being local branches such as UBS, Goldman Sachs, Merrill Lynch and JP Morgan

The number of foreign brokerage companies has been kept almost unchanged as the Asian companies, such as China Merchants Securities, japan-based Mizuho Securities and Taiwan-based Yuanta Securities, entered the Korean market while the US and British companies closed down their business here.

In June this year, China Merchants Securities established a wholly owned subsidiary here, becoming the first Chinese brokerage house. Three months later, Japan's Mizuho Securities opened its branch office in Seoul. In particular, Taiwan-based Yuanta Securities acquired Tongyang Securities, becoming the largest among the foreign brokerage players in the Korean market

In contrast, three local securities companies such as Apple Investment Securities and BNG were closed down due to poor performances during the last seven-year period, while four firms including Daewoo Securities, Hyundai Securities and Prudential Securities were merged into other local players. Seven years ago, securities companies operating in South Korea totaled 62 with the number of foreign players reaching 21.

Despite their large number, foreign securities companies accounted for just around 10 percent of the industry's total workforce (eight percent) and paid-in capital (11 percent) as the local companies enlarged their size for survival.