Top 10 Korean brokerages’ Q2 operating profits nosedive

[THE INVESTOR] The second quarter operating profits of major South Korean brokerages were halved from a year ago, industry data showed Aug. 17.

According to financial industry information provider FnGuide, the combined second quarter operating profit of the country’s 10 largest securities companies fell 49.2 percent from a year ago to 538.8 billion won (US$489.2 million). 

The drop is thought to have been caused by the effects of the UK’s decision to leave the European Union, as well as falling profitability of equity-linked securities.

The data showed that Hyundai Securities saw the largest change, posting operating loss of 5.6 billion won.

Mirae Asset Daewoo, which is set to merge with Mirae Asset Securities, posted a second-quarter operating profit of 53.6 billion won, down 65 percent from a year earlier.

Of the 10, Yuanta Securities Korea and Mirae Asset Securities were exceptions, posting year-on-year increases in operating profit. Yuanta’s second-quarter operating profit rose 151.76 percent to 4.9 billion won, while that of Mirae Asset Securities increased 6.16 percent to 68.1 billion won.

By Choi He-suk (cheesuk@heraldcorp.com)