Korea Investment & Securities tops $1.4 billion in profits after record 2025

Korea Investment & Securities Co., the brokerage arm of Korea Investment Holdings Co., reported record earnings for 2025, becoming the first domestic securities firm to surpass 2 trillion won in annual net profit in South Korea as growth across trading, wealth management and investment banking lifted performance.

Consolidated net profit rose to 2.01 trillion won ($1.4 billion) in 2025, while operating profit increased 76.3% year-on-year to 2.34 trillion won — both industry records in the country — Korea Investment Holdings said Wednesday in a regulatory filing.

Separate net operating revenue climbed 39% to 3.06 trillion won.

The results extend the firm’s earnings lead over local peers and come as local policymakers move to strengthen the capital base and funding flexibility of the country’s largest brokerages in a bid to foster globally competitive investment-banking franchises.

BROAD-BASED EARNINGS GROWTH

Gains were spread across business lines rather than concentrated in a single segment, the company said.

Brokerage commission income rose 39.6% from a year earlier as domestic and overseas equity trading volumes increased, the company said.

Global equity markets advanced in 2025 despite bouts of volatility, with South Korea’s benchmark Kospi index rising more than 70% over the year, outperforming major peers and ranking among the world’s best-performing markets.

In wealth management, sales of funds, wrap accounts and derivatives products lifted retail client financial product balances by 17 trillion won to 85 trillion won.

Investment banking revenue increased 14.9%, supported by deal flow across initial public offerings, equity capital markets, debt capital markets and project financing mandates.

Proprietary investment and trading generated 1.28 trillion won in net operating revenue, up 76.3% from the prior year and accounting for 41.7% of total net operating revenue.

“These results are not simply about bigger numbers, but show that our profit-generation structure and execution capabilities have advanced to a new level,” said Kim Sung-hwan, chief executive of Korea Investment & Securities.

IMA AUTHORITY ADDS FUNDING FLEXIBILITY

The earnings announcement follows the financial authorities’ designation of Korea Investment & Securities and Mirae Asset Securities Co. as the country’s first operators of investment management accounts, or IMAs.

IMAs allow securities houses to manage discretionary portfolios while guaranteeing client principal, with at least 70% of assets allocated to corporate and growth-related financing.

By pairing record profitability with expanded funding authority, Korea Investment & Securities is positioned to deepen its role in corporate lending and cross-border transactions. This aligns with Seoul’s effort to expand the presence of domestic brokerages in segments traditionally dominated by global investment banks such as Goldman Sachs.