KOSPIFinance071050

Korea Investment Holdings

₩180,800▲ 0.72%2026-10-02 close

Market Cap

₩10.1T

Turnover

₩24.5B

Volume

140,000 shares

Shares out.

55.7M

PER

3.8×

PBR

0.8×

EPS

₩50,230

Dividend Yield

4.60%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩8,690 per share · Prices as of the 2026-10-02 close

Report overview

Earnings Step Up, Trading Value Slowdown Is the Test

Simultaneous gains in brokerage, wealth management and trading at core subsidiary Korea Investment & Securities pushed first-half 2026 profit to a record zone, but the sharp drop in market turnover in July and August and a highly leveraged balance sheet remain second-half variables.

1
Second-quarter 2026 consolidated operating profit was 1.344 trillion won and net profit attributable to owners 995.9 billion won, the highest quarterly zone on record, extending gains from the first quarter (operating profit 1.106 trillion won, net profit 914.9 billion won).
2
Annual operating profit rose for four straight years, from 545.8 billion won in 2022 to 820.4 billion won in 2023, 1.200 trillion won in 2024 and 2.345 trillion won in 2025, while net profit attributable to owners grew from 636.8 billion won to 2.020 trillion won over the same span.
3
Korea Investment & Securities reported a first-half 2026 revenue mix of 41.2% brokerage, 27.0% trading, 16.0% investment banking and 15.8% wealth management, a structure less dependent on any single line.
4
August average daily turnover fell 32.5% to 67.2 trillion won from 99.5 trillion won in July, with tighter minimum deposit rules on single-stock leveraged exchange-traded funds cited as the direct cause.
5
Liabilities stood at 124 trillion won at end-2025 with a debt-to-equity ratio of 1,025.4%, reflecting the leveraged nature of the securities business, while reliance on short-term funding such as issued notes and real-estate finance exposure remain credit-rating talking points.

Business structure

Korea Investment Holdings is a financial holding company whose core subsidiary is Korea Investment & Securities, alongside Korea Investment Partners, Korea Investment Capital, Korea Investment Savings Bank, Korea Investment Private Equity and Korea Investment Real Estate Trust, among other units.

Because Korea Investment & Securities is unlisted, investors gain indirect exposure to its earnings and dividends through the holding company: profits earned at the brokerage are paid up as dividends to the holding company, which then carries out shareholder returns.

The center of gravity is the securities business, and the first-half 2026 revenue mix at Korea Investment & Securities was 41.2% brokerage, 15.8% wealth management, 16.0% investment banking and 27.0% trading, a spread not concentrated in one line.

Separate-basis shareholders' equity was 13.19 trillion won at end-June, the largest among domestic brokers, supporting 22.47 trillion won of issued notes and 2.94 trillion won of Investment Management Account funds. The retail base also widened.

Individual client financial-product balances reached 105 trillion won at end-June, with the company citing average monthly retail inflows of 3.3 trillion won in the first half, while retirement pensions drew about 5.7 trillion won, equal to 16.9% of total net inflows into the brokerage industry.

In investment banking, the firm said it ranked first in fee income across equity capital markets, rights offerings and domestic bond underwriting, and management pointed to a synergy loop in which retail channel strength feeds deal sourcing while trading capability feeds retail product supply.

On distribution, partnerships with Coinone, Investing.com and Naver Pay have broadened investor access routes.

Competitively it faces Mirae Asset Securities, NH Investment & Securities, Samsung Securities and Kiwoom Securities, and in Investment Management Accounts, Korea Investment & Securities and Mirae Asset Securities hold licenses while NH Investment & Securities awaits approval.

Earnings trend

Quarterly revenue · Operating profit

₩6.4T₩585.6B25Q2₩4.2T₩849.1B25Q3₩381.1B25Q4₩1.1T26Q1₩1.3T26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩22.9T₩545.8B2022₩20.9T₩820.4B2023₩21.2T₩1.2T2024₩2.3T2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩6.4T	₩585.6B	9.1%
2025Q3	₩4.2T	₩849.1B	20.4%
2025Q4	—	₩381.1B	—
2026Q1	—	₩1.1T	—
2026Q2	—	₩1.3T	—

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩22.9T	₩545.8B	₩636.8B	2.4%	8.3%	1020.1%
2023	₩20.9T	₩820.4B	₩707B	3.9%	8.4%	1035.6%
2024	₩21.2T	₩1.2T	₩1T	5.7%	10.8%	1022.0%
2025	—	₩2.3T	₩2T	—	16.8%	1025.4%

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

Second-quarter 2026 consolidated operating profit was 1.344 trillion won and net profit attributable to owners 995.9 billion won, with net profit up 84.7% and operating profit up 129.6% year on year and results 19% above market expectations.

Adding the first quarter (operating profit 1.106 trillion won, net profit 914.9 billion won), first-half operating profit reached 2.451 trillion won and net profit attributable to owners 1.911 trillion won, a second straight quarter of expansion.

The prior four quarters show wide swings: second-quarter 2025 operating profit of 585.6 billion won and net profit of 539.2 billion won, third-quarter figures of 849.1 billion and 673.8 billion won, and fourth-quarter figures of 381.1 billion and 349.1 billion won, with the late-2025 trough illustrating seasonality and the timing of cost recognition.

Net profit attributable to owners over the most recent four quarters totals about 2.934 trillion won.

On an annual basis, operating profit improved for four consecutive years, from 545.8 billion won in 2022 to 820.4 billion won in 2023, 1.200 trillion won in 2024 and 2.345 trillion won in 2025, while net profit attributable to owners went from 636.8 billion won to 707.0 billion won, 1.040 trillion won and 2.020 trillion won; the operating margin rose from 2.4% in 2022 to 3.9% in 2023 and 5.7% in 2024 (revenue of 20-23 trillion won in 2022-2024 reflects gross interest and valuation gains typical of financial accounting).

Drivers cited for the second-quarter surge include separate-basis brokerage fees of 349.7 billion won and wealth management fees of 160.0 billion won at Korea Investment & Securities, up 226% and 2,271% year on year, as domestic market turnover rose 288% from a year earlier, alongside a 106.8% rise in related fee income as sales of issued notes, Investment Management Accounts and beneficiary certificates expanded.

On the balance sheet, end-2025 equity was 12.099 trillion won (12.010 trillion won attributable to owners), liabilities 124.062 trillion won and the debt-to-equity ratio 1,025.4%, similar to the 1,020-1,036% range of 2022-2024.

Operating cash flow was negative for four straight years at minus 4.594 trillion won in 2022, minus 7.287 trillion won in 2023, minus 7.774 trillion won in 2024 and minus 7.607 trillion won in 2025, reflecting the accounting treatment of trading and loan asset changes as operating items during a phase of balance-sheet growth rather than being a direct read on earnings quality.

Note that the first-half consolidated operating profit of 2.170 trillion won and net profit of 1.731 trillion won at Korea Investment & Securities are preliminary, and figures from the third quarter of 2026 onward have not yet been finalized in filings.

Industry analysis

Brokerage earnings track the turnover cycle directly, and Korea's market shifted in 2026 from a first-half boom to a rapid cooling. KOSPI average daily turnover surged to 50.22 trillion won in May and 50.35 trillion won in June before falling to 36.88 trillion won in July and 26.28 trillion won in August.

Market-wide average daily turnover fell 27.6% in July to 99.5 trillion won from 137.5 trillion won a month earlier, split into 43 trillion won on the Korea Exchange, 23.3 trillion won on Nextrade and 33.3 trillion won in exchange-traded funds, and August turnover dropped a further 32.5% to 67.2 trillion won, with ETF turnover down 47.1%.

Regulation was the direct trigger: after the authorities raised the minimum deposit for single-stock leveraged ETFs to 30 million won from July 31, average turnover ratios fell from 160% to 52.5% on day one and daily turnover in those products fell 73%, from an average of 11.7 trillion won to 3.2 trillion won.

The index itself was volatile, as KOSPI fell 5.10% in August with sidecars triggered twice, weighed down by large-cap semiconductors as Samsung Electronics dropped 12.00% and SK Hynix 17.23%.

Still, liquidity has not collapsed: August customer deposits were 102.1 trillion won and margin loan balances 30.9 trillion won, both lower month on month, yet margin loans rebounded from 27.4 trillion won in early August, and SK Securities cut its full-year average daily turnover forecast by 5.8% to 95.5 trillion won from 101.3 trillion won.

Competitively, the company leads the industry in both equity capital and issued-note balances, and in Investment Management Accounts Korea Investment & Securities raised about 2.4 trillion won across four offerings while Mirae Asset Securities raised only 200 billion won in two.

On policy, the mandatory venture-capital supply ratio rises in stages to 10% in 2026, 20% in 2027 and 25% in 2028, changing how large brokers deploy assets.

Outlook

Management is foregrounding a revenue structure less dependent on any single line.

Korea Investment & Securities said it is sustaining stable growth on a balanced revenue mix that is not dictated by one business or market condition, and that it aims to become a global-caliber investment firm on the back of upgraded risk management.

In new business, Investment Management Account offerings continue: on August 18 the firm said it would offer a new product, Korea Investment IMA S6, with a 200 billion won cap in a subscription window through August 25.

Group strategy follows the direction in which Chairman Kim Nam-koo, at the annual general meeting, named global business, digital and internal controls as three core strategies and pledged to expand financial solutions through overseas subsidiaries and strategic partnerships with top-tier global asset managers.

Shareholder returns have scaled with earnings: total cash dividends for fiscal 2025 came to 507.8 billion won, up 118% year on year, for a consolidated payout ratio of 25.1%. Second-half expectations, by contrast, are being trimmed.

Kiwoom Securities said in an August 2026 report that because the strong equity market was a major factor, earnings could decline if the market corrects, while also stating that the expected 2026 dividend yield would be a record high in the high-6% range.

On funding and soundness, Moody's has laid out three conditions for an upgrade: improving the funding mix through longer-term funding, bringing the risk-appetite ratio closer to 20%, and keeping leverage below six times, so how the firm pairs expansion in issued notes and Investment Management Accounts with capital discipline matters.

Results from the third quarter of 2026 have not yet been finalized in filings, and the first quarter to reflect the July-August turnover decline in brokerage and wealth management fees will be the checkpoint.

Valuation

PER

3.8×

PBR

0.8×

ROE

24.4%

EPS

₩50,230

BPS

₩234,827

Dividend per share

₩8,690

Because earnings here are sensitive to market turnover and trading conditions, multiples based on the most recent four quarters of profit differ widely from those based on the last full audited year.

On a price-to-book basis the shares trade below net asset value, and it is worth noting that our own calculation and the Korea Exchange's published figure differ somewhat because of different book-value-per-share conventions.

Sector multiples have also come down: SK Securities said the average price-to-book ratio across its brokerage coverage universe had fallen to 0.8 times while the average dividend yield exceeded 6%.

Dividends have scaled with profit, given that total fiscal 2025 dividends rose 118% year on year for a consolidated payout ratio of 25.1%, which also means the absolute dividend pool can move if second-half profit slows.

On target prices, Kiwoom Securities said in an August 2026 report that it was maintaining a target price of 310,000 won and a buy rating, and Yoon Yoo-dong of NH Investment & Securities said the same month that the company sits at its highest recurring earnings level and is rapidly expanding market dominance in retail after global investment banking.

Those are the views of those brokers; the starting point for interpreting any multiple is the factual multi-year path, in which profit has been on a clear recovery and expansion track since 2022.

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 Power Has Stepped Up a Level

Annual operating profit expanded for four straight years, from 545.8 billion won in 2022 to 2.345 trillion won in 2025, and the first half of 2026 alone delivered operating profit of 2.451 trillion won and net profit attributable to owners of 1.911 trillion won.

Quarterly net profit approaching the 1 trillion won mark is unusual against the company's historical range. Management said that after becoming the first domestic brokerage to top 2 trillion won in both operating and net profit last year, it matched close to the full-year 2025 result within six months this year. The operating margin also improved from 2.4% in 2022 to 5.7% in 2024.

Capital Base Underpins First-Mover Position in New Businesses

Separate-basis equity of 13.19 trillion won at end-June is the largest in the domestic brokerage industry, supporting 22.47 trillion won of issued notes and 2.94 trillion won in Investment Management Account funds.

Investment Management Accounts are permitted only for comprehensive financial investment firms with at least 8 trillion won of equity, and Korea Investment & Securities raised 1.059 trillion won in its first product and roughly 1.4 trillion won more through its second through fourth offerings.

Of the 1.12 trillion won of assets in the first product, 53.2% was allocated to corporate lending, tilting the book toward corporate finance assets. That gives the firm an early position in an area where capital size itself acts as a barrier to entry.

Earnings-Linked Return Capacity Has Widened

Total dividends for fiscal 2025 came to 507.8 billion won, up 118% year on year, with a consolidated payout ratio of 25.1%.

The company has framed shareholder returns as growth-driven, saying it will improve dividends while sustaining profit growth through globally competitive equity scale, higher investment returns and new businesses.

With a larger profit base, even an unchanged payout ratio mechanically lifts the absolute pool available for returns. That said, it hinges on profit levels holding up.

Bear factors

Directly Exposed to Collapsing Turnover

The second-quarter profit surge leaned heavily on an environment in which domestic market turnover was 288% higher than a year earlier. But August average daily turnover fell 32.5% to 67.2 trillion won from 99.5 trillion won in July, with ETF turnover down 47.1%.

Kiwoom Securities projected that earnings could shrink if the market corrects, given how much the rally contributed. With brokerage at 41.2% of first-half revenue, that sensitivity is structural.

High Leverage and Short-Term Funding Reliance

End-2025 liabilities were 124.062 trillion won with a debt-to-equity ratio of 1,025.4%, in line with 1,020.1% in 2022, 1,035.6% in 2023 and 1,022.0% in 2024.

Analysts note that issued notes are a funding tool with maturities inside one year, so a structural mismatch is always present and market volatility can compress investment returns or even produce negative spreads.

Moody's cut the long-term rating to Baa3 from Baa2 and the short-term rating to P-3 from P-2 in 2025, while raising the outlook to stable from negative. In other words, funding structure and risk appetite sit at the center of the ratings debate.

Twin Burden of Real-Estate Finance and Venture-Capital Mandates

Real-estate finance exposure is relatively high, with project finance reported at 75% of real-estate finance as of September 2025 and mezzanine or subordinated tranches at about 39% of that project finance.

On top of that, government plans require 25% of funds raised via issued notes and Investment Management Accounts to be invested in venture capital by 2028, and given balance sizes the mandated venture-capital commitment is calculated at roughly twice that of peers.

Moody's noted a risk-appetite ratio of 24.5%, above the peer average of 20%. A deteriorating credit cycle could therefore amplify earnings volatility.

Risk factors

Market and Fee Revenue Volatility

A large share of profit is tied to market turnover and financial-product sales. August average daily KOSPI volume was 301.67 million shares, the lowest this year, and participation fell even as price volatility rose, indicating a wait-and-see stance.

It was also noted that the KOSPI 200 volatility index eased from near 100 to 80 but remained at levels seen in the 2008 financial crisis. A prolonged contraction in trading could pressure both brokerage and wealth management fees.

Regulatory and Policy Change

Leverage-product rules have already hit turnover directly, and the government is reviewing legal amendments to adjust leverage multiples.

On capital rules, the mandatory venture-capital supply ratio rises in stages from 10% in 2026 to 25% in 2028, while funding capacity is capped at 200% of equity for issued notes and 100% for Investment Management Accounts.

Investment Management Accounts carry a principal-repayment obligation even when losses occur, along with a 5% seeding requirement and loss-reserve accumulation duties. Shifts in regulatory intensity and asset-allocation requirements could reshape the profitability structure.

Holding Structure and Subsidiary Soundness

Holding-company profit depends on a chain in which the securities subsidiary's earnings are paid up as dividends to the holding company, which then executes shareholder returns, so swings in brokerage results pass straight through to dividend capacity.

The group also faces a structural constraint in that because it owns Korea Investment Savings Bank, it falls under Article 28 of the Financial Holding Companies Act and is barred from controlling a bank through a subsidiary.

Asset quality at lending units such as the capital and savings bank arms tracks the economy and the property market. A broader subsidiary portfolio also raises the difficulty of group-wide risk management.

What to watch next

Early November 2026
Preliminary third-quarter 2026 results from Korea Investment & Securities and Korea Investment Holdings. This is the first quarter to reflect the July-August turnover slump in brokerage and wealth management fees, and it will test whether the first-half profit level is sustainable.
Early each month, starting September
Monthly average daily turnover across the Korea Exchange, Nextrade and ETFs, plus customer deposits and margin loan balances. With SK Securities having cut its full-year average daily turnover forecast to 95.5 trillion won, the key is whether actual figures run above or below that bar.
Fourth quarter of 2026
The size of new Investment Management Account offerings and changes in issued-note balances. With the mandatory venture-capital supply ratio rising to 20% in 2027, it is worth tracking what asset mix results from expanded funding and compliance.
Around February 2027
The year-end dividend decision for fiscal 2026. The benchmark is the fiscal 2025 consolidated payout ratio of 25.1% and a 118% year-on-year increase in total dividends; any change in payout ratio or treasury-share policy will signal the direction of the return framework.
March 2027 annual general meeting
A group strategy update. Since the previous annual meeting named global business, digital and internal controls as three core strategies, this is the venue to gauge progress on overseas operations and internal-control measures.

Overall view

Simultaneous growth in brokerage, wealth management, investment banking and trading at core subsidiary Korea Investment & Securities lifted Korea Investment Holdings to second-quarter 2026 consolidated operating profit of 1.344 trillion won and net profit attributable to owners of 995.9 billion won, putting quarterly profit close to the 1 trillion won mark.

On an annual basis, operating profit expanded for four straight years from 545.8 billion won in 2022 to 2.345 trillion won in 2025, and net profit attributable to owners from 636.8 billion won to 2.020 trillion won, marking a genuine step-change in earnings capacity.

That level, however, leaned heavily on the first-half surge in market turnover, and with August average daily turnover down 32.5% month on month, whether fee income gives back some of those gains in the second half is the central variable.

On the balance sheet, high leverage with 124 trillion won of liabilities and a 1,025.4% debt-to-equity ratio at end-2025, reliance on short-term funding centered on issued notes, and real-estate finance exposure remain ratings talking points, while the staged increase in mandatory venture-capital supply ratios is changing how assets are deployed.

On the other side, the bull case rests on industry-leading equity capital, a first-mover position in issued notes and Investment Management Accounts, and a dividend pool that grew 118% year on year.

Because both the bull and bear cases stem from the same sources - cycle sensitivity and leverage - the next checkpoints are third-quarter results and the monthly turnover trend. This report is for information purposes only and contains no buy or sell recommendation or target price.

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.