Korean Brokerage Profits Halve in Q3 as Trading Slows
South Korea’s large brokerages earned about half as much in the third quarter of 2026 as they did in the second quarter. Weaker share trading cut the commission income they depend on, and rising interest rates hurt the value of bonds they hold.
What happened
Net profit at Korea Investment and Securities, Kiwoom Securities and NH Investment and Securities fell by an average of 52.3% from the second quarter, according to industry data released on November 8.
Korea Investment and Securities recorded the steepest fall, with net profit of 281.8 billion won (about $192 million), down 70.23% from the previous quarter.
Kiwoom Securities earned 238.6 billion won, down 64.95% from the previous quarter and down 26% from a year earlier.
NH Investment and Securities posted 383.6 billion won, down 21.62% from the previous quarter.
Average daily turnover on the domestic stock market fell 36.24% to 75.3 trillion won in the third quarter, from 118.1 trillion won in the second.
Brokerage commission revenue fell 48.1% at NH Investment and Securities, 42.9% at Kiwoom Securities and 40.6% at Korea Investment and Securities.
Higher interest rates also squeezed trading results, because bond prices fall when yields rise. Korea Investment and Securities booked 158.3 billion won in proprietary trading revenue, down 51.63% from the previous quarter.
Shares of listed brokerages slid to their lowest levels of the year. Korea Investment Holdings, the parent of Korea Investment and Securities, tumbled 17.34% on November 6 to close at 121,600 won.
The outlook is also subdued for brokerages that have yet to report. Mirae Asset Securities may swing to a third quarter loss, partly because of valuation losses on its stake in SpaceX. The market consensus for Samsung Securities’ third quarter net profit is 356.9 billion won, 26.89% below the previous quarter.
Why it matters for beginners
A brokerage earns much of its money from fees charged when customers buy and sell shares. When trading slows, that fee income falls fast, and profits can drop much more than revenue.
This is a useful reminder that a financial company is also a business with its own ups and downs. A quiet market hurts the firms that serve investors, not only the investors themselves.
The share prices of the brokerages fell to their lowest levels of the year, which shows how quickly the market reprices a company when its earnings outlook changes. To understand why a sharp fall is painful for investors who sell at the low point, read our guide What Is Risk in Investing, in Simple Terms?.
The story also shows the link between interest rates and bond values. When rates rise, existing bonds usually lose value, and firms that hold bonds feel it in their results. Seoul Economic Daily reported the figures on November 8, 2026.
What to watch next
Results from Mirae Asset Securities and Samsung Securities, which will show whether the whole sector is in the same slide.
Whether daily trading turnover recovers in the fourth quarter, since that decides commission income.
Interest rates and bond values, because further rate rises would add more pressure to trading results.
Dividend plans, since lower profit forecasts can shrink the funds available for payouts to shareholders.
Frequently asked questions
What is a brokerage?
A brokerage is a firm that buys and sells shares and other investments for its customers, and charges a fee or commission for the service. Many also trade with their own money, which is called proprietary trading.
Why did profits fall so much in one quarter?
Trading activity dropped sharply, so commission income fell by about 40% to 48% at the three firms. Rising interest rates also cut the value of bonds they hold. When income falls that fast, profits fall even faster because many costs stay the same.
Does this affect ordinary investors?
Not directly. Your shares and cash at a brokerage are separate from the brokerage’s own profits. But the story is a warning that brokerage shares can be volatile, and that a quiet market is bad news for the firms that live on trading fees.
What is proprietary trading?
It is trading done with the firm’s own money, rather than for customers. It can add large profits in good times, but it can also produce losses when markets move against the firm’s positions, as higher rates did to bond holdings in this quarter.
Sources
Seoul Economic Daily, “Korean Brokerage Profits Halve in Q3 as Trading Slows”, November 8, 2026: https://en.sedaily.com/finance/2026/11/08/korean-brokerage-profits-halve-in-q3-as-trading-slows
Korea JoongAng Daily, “Kiwoom Securities Q3 net profit falls 26% to 238.6 billion won”, October 30, 2026: https://www.koreajoongangdaily.com/business/kiwoom-securities-net-profit-down-26-to-2386-billion-won-in-q3/12947104
This article is for general information and education only. It is not legal or financial advice.
