Securities Industry Faces Survival Challenge in Finding New Growth Opportunities as Donghak Ants Leave

▲ Yeouido Securities District, Seoul

[Asia Economy Reporter Kwon Jae-hee] The securities industry, which has enjoyed a boom in recent years due to the so-called 'Donghak Ant Movement,' is seeing a significant decline in individual trading volumes in the stock market this year, prompting active efforts to discover new revenue sources. The saturation of the traditional securities business and the resulting deterioration in profitability are also cited as factors. Accordingly, the securities industry is expanding its business areas into real estate, virtual assets, and more.

According to the industry on the 27th, Shin Young Securities is recently focusing on growing its family heritage service trust solution business targeted at high-net-worth individuals. It provides services such as asset succession, comprehensive asset management, protection, and support. Unlike competitors, anyone with assets exceeding 1 billion KRW can subscribe. This service had previously been offered only by some banks, but recognizing the increasing demand for trusts, the company is viewing it as a new growth area and expanding the business.

Meritz Securities, which was the fastest among securities firms to enter the alternative investment sector, is also aggressively expanding into new business areas. Specializing in real estate finance, Meritz Securities has recently expanded its real estate finance team’s business to include investments in early-stage startups. An industry insider said, "As real estate project financing (PF) has become profitable recently, small and medium-sized firms are competitively entering the market," adding, "They are actively discovering companies in the early startup or pre-IPO stages."

Some securities firms are actively moving forward with digital assets as a new growth area. Mirae Asset Securities, Hanwha Investment & Securities, and SK Securities are representative examples. These firms are actively establishing dedicated virtual asset organizations or specialized corporations, building virtual asset business platforms, and recruiting experts. Mirae Asset Securities is pushing to establish the industry's first corporation dedicated to virtual assets. It is also reportedly developing a blockchain wallet. Hanwha Investment & Securities has invested in Dunamu, which operates a cryptocurrency exchange. SK Securities has newly expanded its digital division, including a digital business headquarters, and recently entered the digital asset investment market.

An industry insider said, "The traditional securities business itself has reached saturation, and as competition intensifies, profitability has deteriorated," adding, "Now, regardless of business division or sector, the policy of all companies is to 'do whatever makes money.'"