Hyundai Motor Securities Surpasses 100 Billion KRW in Annual Operating Profit... 'First' Since Establishment

Q3 Operating Profit Increased by 188.8% Year-on-Year to 54.4 Billion KRW

[Asia Economy Reporter Geum Bo-ryeong] Hyundai Motor Securities has surpassed 100 billion KRW in annual operating profit for the first time since its establishment.

Hyundai Motor Securities announced on the 22nd that its operating profit for the third quarter increased by 188.8% year-on-year to 54.4 billion KRW. This is the highest quarterly performance ever. Net profit for the period also rose by 200.6% compared to the previous year, reaching 40.6 billion KRW.

The cumulative operating profit for the third quarter was 128.4 billion KRW, up 45.4% year-on-year. Net profit for the same period increased by 46% to 93.8 billion KRW.

This is the first time since its founding in 2008 that Hyundai Motor Securities' quarterly operating profit has exceeded 50 billion KRW. It is also the first time the cumulative operating profit has surpassed 100 billion KRW.

The surge in profits in the Investment Banking (IB) and Retail divisions is analyzed as the driving force behind the strong third-quarter performance. Both divisions recorded their highest-ever results. The IB division's net operating revenue for the third quarter was 54 billion KRW, more than doubling compared to the same period last year.

A Hyundai Motor Securities official explained, "Despite concerns about market contraction due to the prolonged COVID-19 pandemic, real estate investment market shrinkage, and strengthened real estate market regulations, the IB division achieved the highest quarterly performance ever."

As part of business diversification, expanding alternative investments such as logistics centers and renewable energy, and focusing on core metropolitan area development projects had a significant impact. The Incheon Hangdong cold logistics center (165 billion KRW) and the Namyangju Dasan Jigeum district complex facility (260 billion KRW) led to record-breaking results.

Photo by Hyundai Motor Securities

The Retail division also saw a significant increase in brokerage commission profits thanks to increased transaction volume and expanded market share. The Retail division's net operating revenue for the third quarter surged by more than 160% year-on-year to 28.9 billion KRW. Going forward, the company plans to focus on expanding its digital competitiveness. Since June, it has been expanding the target countries for its overseas stock trading service and will actively work to increase market share.

A Hyundai Motor Securities official said, "We are achieving continuous growth by building a balanced business portfolio and securing IB competitiveness," adding, "We will actively respond to rapidly changing digital trends and grow into a company that leads the new market environment."