KOSPIFinance039490

KIWOOM Securities

₩259,000▼ 1.33%2026-10-02 close

Market Cap

₩6.8T

Turnover

₩15.2B

Volume

60,000 shares

Shares out.

26.2M

PER

4.0×

PBR

0.9×

EPS

₩66,983

Dividend Yield

4.25%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩11,500 per share · Prices as of the 2026-10-02 close

Report overview

Brokerage Leader on a Double-Edged Turnover Cycle

Kiwoom Securities has entered a record profit phase on the back of its dominant retail brokerage platform, yet a falling retail market share and a sharp post-regulation drop in market turnover are surfacing at the same time.

1
2025 consolidated operating profit reached KRW 1.4882tn and net profit attributable to owners KRW 1.1136tn, more than doubling from 2023 (KRW 564.7bn and KRW 436.3bn).
2
First-half 2026 operating profit of KRW 1.4101tn and net profit attributable to owners of KRW 1.1565tn nearly matched the full-year 2025 operating profit in just six months.
3
Brokerage drove the swing: on the company's preliminary release, second-quarter equity commission revenue was KRW 451.9bn and daily average equity turnover jumped to KRW 36.3tn.
4
In contrast, retail market share has been trending down, and on first-half brokerage commission revenue the firm was tallied third in the industry.
5
After single-stock leveraged ETF rules took effect, August daily average turnover fell 32.5% month on month to KRW 67.2tn, per SK Securities' tally.

Business structure

Kiwoom Securities is a branch-light broker specialized in retail equity brokerage, built around its online and mobile trading platforms (the Yeongwoongmun HTS and MTS family).

According to Dealsite, the firm leans on platform competitiveness that has delivered the top domestic equity trading share for 21 consecutive years.

Its revenue mix spans domestic and overseas brokerage commissions, margin-loan interest, sales and trading (S&T), investment banking (IB), and subsidiary earnings including asset management.

Press coverage citing a Sangsangin Investment & Securities report says total customer accounts stood at 17.81mn as of June 2026, with 4.43mn active accounts that traded in the prior six months.

S&T is described as a structure that converts market activity into trading income via ETF liquidity provision, securities lending and swaps.

IB is centered on debt capital markets and acquisition finance; on the company's preliminary release, second-quarter 2026 IB fee income was KRW 83.3bn, and in equity capital markets it lead-managed the Innospace rights offering.

New businesses now include short-term note issuance, licensed in November 2025 and launched that December, and a retirement pension service launched on June 1, 2026.

Competition has intensified through large brokers' branch sales, direct market access flows from institutions and foreign investors, and newer platform players; on first-half brokerage commission revenue the firm ranked third after Mirae Asset Securities and KB Securities.

In short, heavy reliance on retail flows cuts both ways: it is powerful earnings leverage in up-cycles and a share squeeze when the retail share of turnover shrinks.

Earnings trend

Quarterly revenue · Operating profit

₩4.5T₩408.3B25Q2₩3.4T₩408.9B25Q3₩5.6T₩345.6B25Q4₩9.4T₩621.2B26Q1₩16.1T₩788.9B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩8.9T₩656.4B2022₩9.5T₩564.7B2023₩11.3T₩1.1T2024₩17.1T₩1.5T2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩4.5T	₩408.3B	9.1%
2025Q3	₩3.4T	₩408.9B	12.1%
2025Q4	₩5.6T	₩345.6B	6.2%
2026Q1	₩9.4T	₩621.2B	6.6%
2026Q2	₩16.1T	₩788.9B	4.9%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩8.9T	₩656.4B	₩507.3B	7.3%	11.1%	945.9%
2023	₩9.5T	₩564.7B	₩436.3B	5.9%	9.0%	961.3%
2024	₩11.3T	₩1.1T	₩835B	9.7%	14.9%	888.8%
2025	₩17.1T	₩1.5T	₩1.1T	8.7%	16.6%	1107.5%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On confirmed figures, 2025 consolidated revenue was KRW 17.1217tn, operating profit KRW 1.4882tn and net profit attributable to owners KRW 1.1136tn, well above 2024 (KRW 11.2803tn, KRW 1.0982tn and KRW 835.0bn).

Against 2023 operating profit of KRW 564.7bn and net profit of KRW 436.3bn, and 2022's KRW 656.4bn and KRW 507.3bn, profit scale more than doubled within two years.

Operating margin moved from 7.3% in 2022 to 5.9% in 2023, 9.7% in 2024 and 8.7% in 2025; because brokerage revenue lines include gross proprietary and product amounts, absolute profit levels are more meaningful than the margin ratio itself.

Quarterly, the path went from Q2 2025 revenue of KRW 4.5057tn, operating profit of KRW 408.3bn and net profit of KRW 309.7bn, through a softer Q4 2025 (operating profit KRW 345.6bn, net profit KRW 246.6bn), to Q1 2026 (KRW 621.2bn and KRW 476.4bn) and Q2 2026 (KRW 788.9bn and KRW 680.1bn).

First-half 2026 operating profit of KRW 1.4101tn and net profit attributable to owners of KRW 1.1565tn came close to matching full-year 2025 operating profit in half the time.

Q2 2026 revenue of KRW 16.0732tn surged year on year, but since expanded trading and proprietary volumes are booked gross, the revenue growth rate should not be read as an equivalent profit growth rate.

Per the company's preliminary release, drivers included Q2 2026 equity commission revenue of KRW 451.9bn (up 178.3% year on year), daily average equity turnover of KRW 36.3tn (up from KRW 10.8tn), S&T trading income plus dividends and distributions of KRW 249.2bn (up 104.9%), and client assets under management of KRW 26.1tn.

On the balance sheet, equity grew from KRW 4.5931tn in 2022 to KRW 6.7224tn in 2025 alongside retained profits, while the 1,107.5% debt-to-equity ratio reflects the financial-sector norm of customer deposits and borrowings sitting in liabilities.

Operating cash flow has been negative every year since 2022 (minus KRW 6.3999tn in 2025), reflecting cash outflows from expanding financial and operating assets, an item that can move opposite to net profit.

Industry analysis

Korean brokerage earnings are tied directly to the market turnover cycle, and this cycle has been marked by a structurally higher turnover base as retail inflows combined with expanding ETF and short-term trading. The direction has recently turned, however.

On SK Securities' tally, July daily average turnover of KRW 99.5tn was down 27.6% from June's KRW 137.5tn, and August fell another 32.5% to KRW 67.2tn.

The main driver was tighter rules on single-stock leveraged ETFs: turnover in those products collapsed from around KRW 11tn in June and July to KRW 0.9tn in August, and SK Securities cut its 2026 daily average turnover forecast from KRW 101.3tn to KRW 95.5tn.

On competitive positioning, a March SK Securities report put Kiwoom's brokerage share at 17.9%, still first in the sector, yet its retail share slipped from 26.5% in Q4 2025 to 25.7% in Q1 2026 amid a large-cap and ETF-skewed market and stronger branch sales at big rivals.

The retail investor share of market turnover falling from 53.9% to 42.0% year on year in the first half also worked against a retail-centric operator.

On the regulatory front, the comprehensive investment banking framework is being reshaped around short-term note issuance and Investment Management Accounts (IMA); Korea Capital Market Institute materials note IMA is permitted only for firms with equity of at least KRW 8tn, a threshold Kiwoom does not yet meet given confirmed 2025 year-end consolidated equity of KRW 6.7224tn.

Meanwhile the retirement pension market grew to KRW 508.7326tn in reserves as of Q1 2026 with securities firms holding KRW 141.6797tn, making it the focal battleground for balance-based revenue that can offset brokerage volatility.

Outlook

Management's stated direction is diversification away from retail brokerage dependence.

Short-term note issuance began with a first product in December 2025 after November licensing, passed KRW 1tn in balances by March 2026, with a stated target of roughly KRW 2tn by mid-year and a plan to supply KRW 600bn of new venture capital this year.

According to Joseilbo, the firm also outlined a total KRW 3tn new venture capital supply plan for 2026 to 2028 funded through those notes.

The retirement pension business launched on June 1, 2026 branded as Korea's first fully non-face-to-face provider; the firm set a conservative first-year reserve target of under KRW 500bn while pledging a 10% share of the securities-sector pension market and a top-five reserve ranking by 2035.

Shortly after launch the company said reserves exceeded KRW 100bn in about a month, supported by a fee strategy waiving management and asset custody fees for one year across DB, DC and IRP plans.

Shareholder returns are anchored by the corporate value enhancement plan approved by the board on June 12, 2026: a payout ratio of at least 30% of separate net profit, a consolidated dividend payout ratio of at least 25%, total dividends growing at least 10% year on year, and a plan to introduce capital-surplus-based dividends within 2028.

Growth pillars listed alongside include mega-IB expansion, pensions, global operations (a Singapore asset manager and US market entry) and digital assets (tokenized securities issuance infrastructure, a controlling stake in the KDX trading platform, and crypto exchange partnerships).

The swing factor for second-half results, though, is turnover levels rather than new-business progress, and the first thing to verify is how August's turnover slump feeds into third-quarter brokerage commissions and trading income.

Valuation

PER

4.0×

PBR

0.9×

ROE

25.4%

EPS

₩66,983

BPS

₩288,461

Dividend per share

₩11,500

Brokerage stocks structurally trade at low earnings multiples because of turnover cycles and trading-income volatility, and on the last four quarters of earnings Kiwoom sits in a similarly low multiple zone to other large Korean brokers.

Its share price sits modestly below our own calculated book value per share, though the Korea Exchange's published ratio differs from our figure because of timing differences in the equity and share-count inputs.

In its June 2026 disclosure the company said that, on 2025 results, it had met both its value-up targets of a price-to-book ratio above 1x and a shareholder return ratio above 30%.

SK Securities said in an early-August report that the sector's average price-to-book ratio had fallen to roughly 0.9x after the share-price correction and that Kiwoom's expected dividend yield for this year stood above the sector average.

On price targets, SK Securities said in its July 23, 2026 report that it had cut its target to KRW 500,000 while maintaining a buy rating, citing brokerage share losses and higher costs, and Sangsangin Investment & Securities initiated coverage in early August 2026 with a target of KRW 385,000.

Ultimately the multiple hinges on earnings durability: if turnover contracts, both profits and the dividend pool move together, which is why the same ratios can be read in opposite ways.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Earnings leverage in rising-turnover phases

With brokerage a large share of net operating revenue, profits respond quickly when market turnover rises.

Q2 2026 operating profit of KRW 788.9bn and net profit attributable to owners of KRW 680.1bn were sharply above Q2 2025 (KRW 408.3bn and KRW 309.7bn), and on the company's preliminary release daily average equity turnover expanded from KRW 10.8tn to KRW 36.3tn.

In a March report SK Securities said the firm retained the top sector brokerage share at 17.9% with the highest earnings sensitivity to rising daily turnover. The same sensitivity, however, works in reverse when turnover falls.

Revenue base widening into notes and pensions

Short-term note issuance started with a December 2025 product launch after November licensing and passed KRW 1tn in balances by March 2026, with a stated first-half target of about KRW 2tn and KRW 600bn of new venture capital supply this year.

The retirement pension business launched on June 1, 2026 on a non-face-to-face model, and the company said reserves exceeded KRW 100bn within roughly a month. Balance-based fees correlate less with turnover swings and are viewed as a stabilizer for the revenue mix. Both businesses remain early stage, so the actual scale of their profit contribution is still to be verified.

Codified cash-dividend-led return policy

The value enhancement plan approved by the board on June 12, 2026 commits to a payout ratio of at least 30% of separate net profit, a consolidated dividend payout ratio of at least 25%, total dividends rising at least 10% annually, and introducing capital-surplus dividends within 2028.

The company disclosed that it cancelled all treasury shares held in 2025 and raised its per-share dividend substantially versus the prior year. On credit, Korea Investors Service and NICE Investors Service raised the long-term rating from AA- (positive) to AA (stable) in March 2026.

On the other side, a KB Securities analyst flagged the absence of concrete buyback and cancellation plans and of medium-term return-size guidance as gaps to be addressed.

Bear factors

Falling retail share and slipping rankings

Retail share in domestic equities fell from 26.5% in Q4 2025 to 25.7% in Q1 2026, and reports put February 2026 retail share at about 25.8%, below the prior 29 to 30% range.

On first-half brokerage commission revenue the firm was tallied third behind Mirae Asset Securities and KB Securities, having ceded the number two brokerage position.

Cited causes include the market's tilt toward KOSPI large caps and ETFs, a drop in the retail share of turnover (42.0% in the first half versus 53.9% a year earlier), and large brokers' direct market access offerings.

An iM Securities analyst said concerns about underlying earnings power are limited but that share-related worries need to be resolved first.

Regulation-driven turnover slump

On SK Securities' tally, August daily average turnover fell 32.5% from July's KRW 99.5tn to KRW 67.2tn, with ETF turnover down 47.1%.

Single-stock leveraged ETF turnover dropped from around KRW 11tn in June and July to KRW 0.9tn in August after the rules took effect, and its share of total ETF turnover fell from the low-30% range to about 5%. SK Securities consequently cut its 2026 daily average turnover forecast from KRW 101.3tn to KRW 95.5tn. In a brokerage-heavy business model, such shifts feed straight into quarterly results.

Cost, capacity and tax burdens

In a July report SK Securities cut its price target, explaining that a large-cap-led market was eroding brokerage share and that a heavy ETF liquidity-provision business had lifted education tax costs more than at peers, making a historical valuation premium harder to justify.

The same report noted a persistent shortage of retail margin-lending capacity. Since margin lending underpins brokerage interest income, capacity constraints can cap profit expansion.

On confirmed figures, the 2025 operating margin of 8.7% was below 2024's 9.7%, and even allowing for gross revenue accounting, the cost trend warrants monitoring.

Risk factors

Market and cycle risk

A large share of profit is linked to market turnover and trading income, making quarterly results volatile. Even within confirmed figures, quarterly operating profit ranged from KRW 345.6bn in Q4 2025 to KRW 788.9bn in Q2 2026, a gap of more than double.

An NH Investment & Securities analyst said the brokerage-led improvement cycle continues but that sector characteristics can produce large earnings volatility depending on turnover trends.

Regulatory and policy risk

Policy shifts that alter trading structures, such as the single-stock leveraged ETF rules, can rapidly change the earnings base.

The comprehensive IB framework covering short-term notes and IMA requires venture capital supply ratios to rise in stages to 10% in 2026, 20% in 2027 and 25% in 2028, meaning larger funding also means larger credit exposure.

Digital asset and tokenized securities initiatives could see timelines and revenue recognition shift with the pace of legislation.

Balance sheet and funding risk

On confirmed figures, 2025 total liabilities were KRW 74.4514tn with a debt-to-equity ratio of 1,107.5%, high leverage typical of financials, while operating cash flow has been negative every year since 2022 (minus KRW 6.3999tn in 2025).

Scaling up note issuance can compress margins if funding costs and investment returns diverge, and promotional rates raise the average cost of funds. Equity of KRW 6.7224tn at end-2025 remains below the KRW 8tn threshold required for an IMA license.

What to watch next

Late October to early November 2026
Q3 2026 results. The key checks are how much of August's turnover slump (daily average KRW 67.2tn, down 32.5% month on month) flows into brokerage commissions and S&T trading income, and the direction of profit versus Q2.
Monthly, September to December 2026
Monthly daily average turnover, margin loan balances, and whether leveraged products recover share within ETF turnover. Actual trends versus SK Securities' lowered full-year forecast (daily average KRW 95.5tn) will set earnings expectations.
Fourth quarter of 2026
Retirement pension reserve trends against the first-year target of under KRW 500bn, short-term note balances, and progress on this year's KRW 600bn venture capital supply plan. These gauge how far balance-based revenue offsets brokerage volatility.
Around February 2027
Confirmation of full-year 2026 results and the dividend decision. Whether the consolidated payout ratio exceeds 25%, total dividends grow at least 10% year on year, and the high-dividend company criteria are met for a second straight year will test the June return plan.
From the fourth quarter of 2026 onward
Watch preparations for capital-surplus dividends (targeted within 2028), progress in digital assets (tokenized securities issuance infrastructure, a controlling stake in the KDX platform, crypto exchange partnerships), and any change in comprehensive IB status as equity grows.

Overall view

On confirmed figures, Kiwoom Securities lifted operating profit from KRW 564.7bn in 2023 to KRW 1.4882tn in 2025, and first-half 2026 operating profit of KRW 1.4101tn with net profit attributable to owners of KRW 1.1565tn puts its earnings power at a structurally higher level.

The engine has been retail brokerage platform strength plus rising market turnover, with daily average equity turnover reaching KRW 36.3tn in Q2 2026 on the company's preliminary release.

At the same time retail share slid to 25.7% in Q1 2026 and the firm ranked third on first-half brokerage commissions, so market expansion and share erosion are occurring together.

Compounding this, August daily average turnover collapsed to KRW 67.2tn after the single-stock leveraged ETF rules, prompting debate over lowering second-half earnings expectations.

The company has laid out a structural shift via short-term notes, pensions and IB expansion alongside a cash-dividend-led return policy (payout ratio above 30%, dividend growth of at least 10%, capital-surplus dividends within 2028), but new-business profit contribution is still early stage.

Ultimately the durability of turnover levels, the defense of market share, and growth in new-business balances are the three axes that will determine the earnings path. This report is for informational purposes and contains no buy or sell recommendation.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.