The headquarters of the Monetary Supervisory Service in Seoul, July 30, 2021 / Korea Occasions picture by Bae Woo-han
Main securities corporations right here have raised a report excessive fee revenue of practically 2 trillion gained ($1.35 billion) from abroad inventory brokerages this yr, the state monetary regulator mentioned Friday, urging the companies to chorus from extreme promotion of funding in overseas inventory markets.
The highest 12 securities companies reported a mixed revenue of 1.95 trillion gained in fee revenue from abroad inventory brokerages within the first 11 months of this yr, already surpassing their annual whole of 1.25 trillion gained in 2024, which marked an all-time excessive, in response to the Monetary Supervisory Service (FSS).
The 2025 determine can also be greater than 3 times greater than the 581 billion gained revenue recorded in 2023.
The FSS mentioned the securities companies raised report revenue from abroad inventory buying and selling however practically half of particular person traders recorded losses from abroad inventory accounts resulting from elevated volatility in international markets.
From January to October, retail traders noticed a mixed lack of 373.5 billion gained from abroad securities.
Native securities companies have aggressively attracted traders for overseas inventory buying and selling, however haven’t supplied enough info on dangers related to abroad funding, akin to trade charge fluctuations and variations in tax programs, the FSS mentioned, vowing stern measures in opposition to any irregularities within the corporations’ actions associated to abroad inventory buying and selling.
Securities companies might face critical penalties, together with suspension of enterprise operations for overseas inventory buying and selling, ought to they be discovered to have supplied exaggerated commercials, inadequate explanations of funding dangers or funding suggestions unsuitable for traders’ threat tolerance ranges, the regulator harassed.
The FSS mentioned it has begun inspections on quite a few securities companies to see if they’ve taken enough investor safety measures, and that it’ll additionally push for measures to ban enterprise practices that induce particular person traders’ extreme funding in abroad securities.
