South Korea's Securities Stocks Plunge 39.8% From May High Despite Record Q2 Earnings Outlook

According to Korea Exchange data as of July 21, the KRX Securities Index fell 39.8% from its 52-week high of 3,362.84 recorded on May 6, closing at 2,022.99. Major brokerage stocks including Mirae Asset Securities (down 46.3%), Kiwoom Securities (30.7%), and Korean Financial Group (17.0%) have all declined sharply over the past three months as foreign selling and market volatility pressured the broader market.

Despite the stock weakness, five major brokerages are forecast to achieve record-high second-quarter operating profits totaling 4.84 trillion Korean won, with Mirae Asset Securities leading at 1.90 trillion won, according to F&Guide. The strong earnings reflect a 39.8% increase in average daily trading volume including ETFs during Q2 compared to the previous quarter.