Sangsangin Investment & Securities Co., Ltd. Expands Core Business Beyond Its Weight Class, Restoring Profitability After Returning to the Black

[Financial News] Sangsangin Investment & Securities Co., Ltd. is working to restore profitability by expanding its bond underwriting and corporate finance businesses. Following its return to profitability in the first half of this year, it has also climbed the rankings for its bond and equity capital markets performance. Attention is focused on whether the small- and mid-sized brokerage, with equity capital in the KRW 200-billion range, can continue to improve earnings by expanding its core businesses.
According to the financial investment industry on the 31st, Sangsangin Investment & Securities Co., Ltd. underwrote KRW 2.03 trillion in capital bonds (126 deals) from January to September this year, ranking eighth in the industry. Its market share was 4.43%. 
Capital bond underwriting increased by KRW 740 billion in the third quarter alone, from a cumulative KRW 1.29 trillion in the first half. Card bond underwriting also totaled KRW 970 billion (57 deals) over the first three quarters, giving the company an 4.10% market share and eighth place. That was a four-place rise from 12th in the first half.
In September, it ranked fourth for the month with KRW 320 billion in card bond underwriting, representing a 7.52% market share. In the same month, it ranked sixth in capital bond underwriting, with KRW 290 billion and a 4.89% market share. 
The company also built its track record in equity capital markets (ECM). Its cumulative ECM transaction value for deals it led in the first three quarters of this year, excluding block trades, was KRW 59 billion across three deals, placing it 10th. Alongside bond underwriting, it is broadening its corporate finance business base by acting as lead manager on equity offerings.
First-half earnings also improved. Net income was KRW 11.1 billion, turning a KRW 7.3 billion loss in the same period a year earlier into a profit. Operating profit came to KRW 8.5 billion. After its annual operating loss narrowed from KRW 49.7 billion in 2024 to KRW 9.2 billion last year, the company posted an operating profit in the first half of this year.
By division, wholesale and investment banking (IB) recorded profits of KRW 6.9 billion and KRW 5.4 billion, respectively. Retail and asset management also posted profits of KRW 1.7 billion and KRW 600 million, respectively, with all four business divisions generating profits. Sangsangin Investment & Securities Co., Ltd. said this was the result of building a portfolio that was not overly concentrated in any one area since Joo Won took office as CEO in 2024. 
Capital adequacy indicators also improved. Net operating capital rose by KRW 33.3 billion, from KRW 142.8 billion at the end of 2024 to KRW 176.1 billion at the end of June this year. Over the same period, the net capital ratio (NCR) increased by 83.25 percentage points, from 214.25% to 297.50%.
The balance of loan receivables rose from KRW 122.9 billion to KRW 165.7 billion, but the ratio of loss allowances to loan receivables fell from 25.96% to 15.04%. This reflects the cleanup of nonperforming assets and changes in the composition of lending.
Industry observers say that the recovery in profitability and improvement in capital indicators suggest that the factors behind the valuation discounts applied to small- and mid-sized brokerages are entering a phase of resolution. 
[email protected] Joo Won-gyu Reporter