Korean brokerages’ profits jump on trading boom

Securities companies in Korea saw net profit soar 20 percent in the second quarter, largely due to higher commission income from a spike in stock trading, data showed Thursday.

The combined net profit of 61 domestic securities firms reached 5.19 trillion won ($3.88 billion) in the April to June period, up from 4.33 trillion won three months earlier, according to data from the Financial Supervisory Service.

The companies' combined income from commission fees increased 32.5 percent on quarter to 8.9 trillion won in the second quarter, aided by a surge in stock trading, while their combined income from their own investment or stock trading gained 45.8 percent to 5.98 trillion won over the cited period.

In the April to June period, stock turnover came in at 4.4 quadrillion won, sharply up from the previous quarter's 2.8 quadrillion won, according to the watchdog.

Their combined assets had stood at 1.3 quadrillion won as of the end of June, up 158 trillion won, or 14.4 percent, from three months earlier, and debts gained 15.1 percent to 1.1 quadrillion won over the cited period.

Their capital base climbed 7.7 percent on quarter to 115.1 trillion won at the end of June, the latest findings showed.

Meanwhile, three futures firms racked up a net profit of 36.8 billion won in the second quarter, up 12.8 percent from a quarter earlier, according to the latest findings.

Yonhap