South Korean Brokerages Net Profits Surged in 2021, Data Shows

South Korean brokerage firms’ net profit increased sharply last year as a result of higher transaction fees, according to The Korea Herald, quoting Yonhap.

Based on data from the Financial Supervisory Service, Korea’s financial regulator, 58 brokerage firms reported combined net profits of 9.09 trillion won ($7.5 billion) last year, which is an increase of 54.2% over the previous year.

Transaction fees grew by 23.2% on-year to 16.8 trillion won last year, according to the data. Likewise, earnings from investment banking fees increased by 31.9% on-year to 5.19 trillion won.

According to the data, return on equity, one of the key measures of profitability improved to 12.5% from 9.1% in 2014, while sales and administrative expenses rose 19% to 12.09 trillion won.

Despite their stellar performance last year, their net profit in the fourth quarter dropped 48% to 1.3 trillion won, raising concerns that their earnings could worsen.

Their total assets were 620 trillion won at the end of December, which is an increase of 9.9 trillion won from a year earlier.

The data showed that their liabilities remained almost unchanged at 542.4 trillion won, while their equity increased by 9.8 trillion won on-year to 77.6 trillion won.

2021 FX Metrics in South Korea

As reported early this year, the foreign exchange (forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) volume traded by the South Korean banks touched a record high in 2021, with the average daily figure at $58.31 billion.

The daily FX turnover FX Turnover FX turnover is the sum value of all transactions performed in the foreign exchange market during any specific time although, generally, they are computed monthly. When used in a technical analysis application, FX turnover measures the efficiency and magnitude of asset allocations while a growing turnover is a defining trait of an active bullish market. In forex trading, the volume histogram is one of the most utilized indicators to measure FX turnover. This construct helps plot trading volumes t FX turnover is the sum value of all transactions performed in the foreign exchange market during any specific time although, generally, they are computed monthly. When used in a technical analysis application, FX turnover measures the efficiency and magnitude of asset allocations while a growing turnover is a defining trait of an active bullish market. In forex trading, the volume histogram is one of the most utilized indicators to measure FX turnover. This construct helps plot trading volumes t Read this Term for the year jumped by 10.3% when compared with the previous year’s $52.84 billion. The South Korean central bank started to record the forex market statistics in 2008, and the latest figure was the highest since then.

Spot forex average daily turnover last year in the country reached $22.71 billion, which is 11.6% higher than the previous year. FX derivatives demand also jumped by 9.4% to $35.59 billion.