Domestic Securities Firms' Overseas Offices Rise to 93, Net Profit Up 67.8%

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[Financial News] As securities firms expand overseas, the number of overseas offices has risen to 93. Their operating results have also improved sharply, with net profit at overseas subsidiaries surging 67.8% from a year earlier.
According to the '2025 Overseas Operating Results of Domestic Securities Firms' released by the Financial Supervisory Service (FSS) on the 18th, 16 securities firms were operating a total of 93 overseas offices as of the end of last year, including 83 local subsidiaries and 10 representative offices.
Last year, 14 overseas offices were newly established and one was closed, bringing the total increase to 13 offices. New overseas subsidiaries were set up in the United States (4), Hong Kong (3), India (2), and China, Japan, Indonesia, Singapore and the United Kingdom (1 each). One office in China was shut down. At present, nine comprehensive financial investment firms and seven general securities firms, excluding Meritz Securities, are operating overseas offices.
By region, 66 offices, or 71.0%, are concentrated in Asia. As securities firms expanded into India in 2024, the distribution of offices across Asia became more diversified, while the establishment of new offices in the United States and Hong Kong also increased. The United States and Hong Kong have 18 offices each, or 19.4% and 11.8%, respectively.
The performance of overseas subsidiaries also improved significantly. Net profit at local subsidiaries last year came to $45.58 million, or about 65.4 billion won, up 67.8% from the previous year's 27.17 billion won. The FSS said the increase was driven by a strong stock market and solid earnings growth at subsidiaries in the United States and Hong Kong.
Of the 83 local subsidiaries, 51 posted profits while 32 recorded losses. By region, profits were generated in 13 countries, including the United States, Hong Kong and Vietnam, while losses were reported in two countries, including China and Japan.
At the end of last year, the total assets of local subsidiaries stood at $35.74 billion, or about 51.3 trillion won, equivalent to 7.2% of the total assets of the 16 securities firms. As of the end of last year, local subsidiaries' equity capital reached $8.77 billion, or about 12.6 trillion won, equal to 17.3% of the equity capital of the 16 securities firms.
The FSS said, "As geopolitical risks are rising due to the prolonged situation in the Middle East, uncertainty in the operations of overseas offices is increasing. We will strengthen regular monitoring of potential risks, including the possibility of greater volatility in profits and losses at overseas local subsidiaries."
nodelay@fnnews.com Park Ji-yeon Reporter