Kiwoom Securities saw its stock price drop 11.27% over one month from June 19 to July 20, falling from 346,000 won to 307,000 won, according to Korea Exchange data released July 21. The decline stems from falling retail market share in the brokerage's core business and a Financial Supervisory Service investigation into JTBC short-term bond sales practices. The broader KRX Securities Index fell 14.59% over the same period amid heightened volatility in Korean equity markets.
Kiwoom Securities Stock Falls 11.27% in One Month
Kiwoom Securities' share price declined from 346,000 won on June 19 to 307,000 won on July 20, according to Korea Exchange data. The KRX Securities Index, composed of major Korean brokerage stocks, fell 14.59% over the same period. Average daily trading volume for domestic stocks and ETFs reached 118.1 trillion won in Q2, but securities stocks underperformed despite strong market activity.
Retail Market Share Declines to 24.7% in May
Kiwoom Securities' domestic stock retail market share fell from 26.5% in Q4 last year to 25.7% in Q1 this year and 24.7% in May. Credit financing market share dropped to 12.6% in May, down 0.5 percentage points from the previous month. Na Min-wook, DB Securities analyst, stated: "Continued concerns over retail market share decline have been reflected in our valuation adjustment. Large-cap focused market trends, absence of offline branches, and insufficient credit supply limits are leading to retail share erosion."
DB Securities Cuts Target Price to 500,000 Won
DB Securities lowered Kiwoom Securities' target price from 560,000 won to 500,000 won. The firm projects Q2 net profit at 506.6 billion won, up 63.6% year-over-year, with brokerage commissions expected to rise 23.2% quarter-over-quarter due to increased average daily trading volume. Seol Yong-jin, iM Securities analyst, stated: "For stock price correction to ease, concerns over market share decline need to be addressed first."
Financial Supervisory Service Investigates JTBC Bond Sales
The legal team representing victims of Joongang Group bond losses submitted an inspection request to the Financial Supervisory Service on July 10 regarding JTBC short-term bond sales practices. The attorneys claim Kiwoom Securities guided investors to decline "happy call" verification procedures during bond purchases. Shin Dong-hwan, attorney for the victims, stated: "We confirmed that Kiwoom Securities representatives directly guided clients to register happy call refusal. Actual call recordings contain instructions such as 'You can refuse the happy call during the purchase process' and 'Please register as online happy call refusal in the final step.'"
Kiwoom Securities responded that online product sales are not subject to mandatory happy call procedures. A company representative stated: "According to financial investment company happy call guidelines, happy calls are a post-sale monitoring system and do not apply to online financial product sales. However, as a customer service measure, we operate a system allowing investors to choose whether to receive happy calls when purchasing online."
Kiwoom Securities Responds to Market Share Concerns
A Kiwoom Securities representative stated: "We aim to expand our online retail foundation, which has maintained the No. 1 domestic stock market share for 21 consecutive years, into a comprehensive asset management platform. Our core direction is to enhance the integrated asset management experience centered on Yeong-woong-moon, enabling customers to manage their entire assets — domestic stocks, overseas stocks, retirement pensions, ETFs — on a single platform, beyond simple trading brokerage."
FAQ
How much did Kiwoom Securities stock fall between June 19 and July 20?
Kiwoom Securities stock declined 11.27% from 346,000 won on June 19 to 307,000 won on July 20, according to Korea Exchange data.
What is the Financial Supervisory Service investigating regarding Kiwoom Securities?
The Financial Supervisory Service launched an investigation after a legal team submitted a request on July 10 alleging Kiwoom Securities guided investors to decline "happy call" verification procedures during JTBC short-term bond sales.
What is Kiwoom Securities' current retail market share?
Kiwoom Securities' domestic stock retail market share fell to 24.7% in May, down from 26.5% in Q4 last year and 25.7% in Q1 this year.
