Korean brokerages’ foreign units see losses widen in 2011

Korean securities firms saw losses at their foreign operations widen in fiscal 2011 from a year earlier, due mainly to increased deficits in their Hong Kong businesses amid worsening offshore market conditions, the financial regulator said Tuesday.

The 93 foreign units of 19 local brokerages saw their combined net loss reach $93.8 million during the year that ends on March 31 2012, compared with a loss of $62.6 million a year earlier, according to the Financial Supervisory Service. The firms close their books on March 31.

The weak bottom line came as Hong Kong-based units suffered losses, dented by global jitters stemming from the eurozone turmoil, the FSS said.

The 15 units operating in Hong Kong saw their net losses amount to $66.8 million in fiscal 2011, widening from a loss of $38.0 million in the previous 12 months.

Heightened competition in the Hong Kong brokerage market by Asian investment banks added to the lackluster performance, the FSS said.

As of the end of March 2012, 19 local securities firms ― including top players Samsung Securities Co. and Daewoo Securities Co. ― operated 61 local subsidiaries, three branches and 29 representative offices in 14 countries.

Their combined assets stood at $1.63 billion as of the end of March, growing 4.8 percent from a year earlier, the FSS added. 

(Yonhap News)