South Korea Financial Supervisory Service published preliminary third-quarter 2025 earnings and financial position data for 60 securities companies and three futures trading companies. Securities companies’ net income fell 12.6% quarter on quarter to KRW2.4923 trillion and return on equity declined to 2.6%, while average net capital ratio rose to 920.2% at end-September. Commission income increased 14.1% to KRW4.3945 trillion, driven by a 19.6% rise in brokerage commissions to KRW2.2775 trillion, while investment banking commissions declined to KRW1.0154 trillion. Proprietary trading income grew 8.0% to KRW3.5033 trillion, but other assets-related income dropped 45.6% to KRW967.2 billion as FX-related income fell to KRW-210.4 billion; SG&A expenses edged down to KRW3.4710 trillion. Aggregate assets of securities companies rose to KRW908.1 trillion (liabilities KRW807.3 trillion; equity KRW100.7 trillion) and the average leverage ratio increased to 670.5%. Futures trading companies recorded net income of KRW23.07 billion (ROE 3.1%), with end-September net capital ratio increasing to 1,633.1%. The FSS flagged heightened stock market volatility, rising exchange rates and higher market interest rates as potential drivers of financial market uncertainty, and stated it will monitor securities companies’ financial stability while improving capital and liquidity regulations. It also indicated it will support the financial investment industry in maintaining a stable supply of venture capital.
South Korea Financial Supervisory Service 2025-12-03
South Korea Financial Supervisory Service reports Q3 2025 securities firms net income fell 12.6% to KRW2.49tn and signals monitoring and capital and liquidity rule upgrades
The South Korea Financial Supervisory Service released preliminary Q3 2025 data for 60 securities and three futures trading companies, noting a 12.6% drop in securities companies' net income to KRW2.4923 trillion and a decline in return on equity to 2.6%. Despite increased commission and proprietary trading income, the FSS highlighted concerns over stock market volatility and rising exchange rates, committing to monitor financial stability and enhance capital and liquidity regulations. The authority also aims to support the financial investment industry in ensuring a stable venture capital supply.