South Korea’s Financial Supervisory Service published preliminary second-quarter 2025 results for securities companies and futures trading companies, showing stronger profitability for securities firms and improved capital adequacy. Securities companies recorded KRW2.8502 trillion in net income in Q2 2025, up 16.7% quarter on quarter, with return on equity rising from 2.7% to 3.1%. For securities companies, commission income increased 14.4% quarter on quarter to KRW3.8507 trillion, driven by higher brokerage commissions (KRW1.9037 trillion) and investment banking commissions (KRW1.0809 trillion), while proprietary trading income rose 3.4% to KRW3.2444 trillion. Other assets-related income jumped 44.2% to KRW1.7783 trillion, alongside higher loan-related income (KRW1.0708 trillion) and FX-related income (KRW707.5 billion), while SG&A expenses increased to KRW3.5189 trillion. As of end-June 2025, the 60 securities companies reported aggregate assets of KRW851.7 trillion and an average net capital ratio of 835.6% (up 15.8 percentage points from end-March), with the leverage ratio slightly lower at 666.4%. Futures trading companies posted Q2 2025 net income of KRW22.53 billion (up 9.7% quarter on quarter) and a net capital ratio of 1,558.0% at end-June. The FSS indicated it will closely monitor securities companies’ financial stability amid concerns about rising market uncertainty, support efforts to streamline insolvent assets, and support the financial investment industry in maintaining a stable supply of venture capital.
South Korea Financial Supervisory Service 2025-09-04
South Korea Financial Supervisory Service reports Q2 2025 net income of KRW2.85 trillion for securities firms and higher net capital ratios
South Korea's Financial Supervisory Service reported improved Q2 2025 results for securities and futures trading companies, with securities firms showing a 16.7% increase in net income to KRW2.8502 trillion and a rise in return on equity. The FSS will monitor financial stability amid market uncertainty and support efforts to streamline insolvent assets and maintain venture capital supply.