'Retail Division Ends 15 Years of Losses, Turns Profitable'
'Major Achilles' Heel' Real Estate PF, Concerns Over Insolvency Eased
Accelerating Synergy Among Affiliates
iM Securities has broken its streak of five consecutive quarters of losses and successfully turned a profit in the first quarter of this year, signaling a full-fledged rebound in performance.
On April 28, iM Securities announced through iM Financial Holdings' IR that, on a standalone basis, it recorded net operating revenue of 82.3 billion KRW and net profit of 25.9 billion KRW in the first quarter of 2025, representing increases of 47 billion KRW and 32.3 billion KRW, respectively, compared to the same period last year. With this, iM Securities has successfully returned to profitability and entered a clear trajectory of performance recovery.
This turnaround is attributed to the management innovation initiatives led by CEO Muyong Sung, who took office last year. Immediately after his appointment, Muyong Sung established the Future Innovation Division, set out the "Top 10 Future Innovation Tasks," and launched 30 detailed projects. Key initiatives included the optimization of human and material resources, innovation in the retail division, and strengthening the management of real estate project financing (PF).
'Retail Division Ends 15 Years of Losses, Turns Profitable'
Last year, iM Securities consolidated 10 out of its 21 branches, reorganizing them into 11 mega-center models. In addition, through voluntary retirement programs, the company reduced its workforce by about 20%, implementing bold restructuring measures that enhanced organizational dynamism and established a profit-focused business structure, thereby laying the foundation for improved competitiveness. As a result, the retail division, which had recorded losses for 15 consecutive years, turned a profit in the first quarter.
The efforts of the retail division remain notable in the second quarter as well. The newly introduced joint sales team system has fostered a collaborative environment among employees and invigorated sales activities, showing positive trends that are expected to yield tangible results within the year. At the same time, the company plans to further expand its business scale and continuously increase low-risk revenue by actively recruiting specialized loan brokerage personnel.
'Major Achilles' Heel' Real Estate PF, Concerns Over Insolvency Eased
In the real estate PF division, iM Securities focused on strengthening financial soundness by proactively setting aside large provisions last year. As a result, in the first quarter of 2025, the company's total PF exposure ratio, including purchase commitments relative to equity capital, was reduced to 54%, down approximately 19 percentage points from the same period last year. The provision coverage ratio for PF exposure stood at 45%, alleviating concerns over additional insolvency related to real estate PF.
With concerns over additional insolvency resolved, the real estate PF division is now operating its business with a focus on stable deals that align with market trends. At the same time, the company is seeking to secure outstanding external talent to strengthen its brokerage business, a stable source of revenue, and is reviewing various measures to enhance the engagement of existing sales staff.
Accelerating Synergy Among Affiliates
Efforts are also being accelerated to expand the revenue base by strengthening synergy among affiliates. iM Securities is operating the IB2 Division as a dedicated corporate sales team for the Daegu and Gyeongbuk regions, aiming to expand the sales base in these areas, which are the birthplace of the iM Financial Group. As a result, the company has achieved tangible outcomes, such as signing a listing advisory contract with local company AllsoTech and attracting a paid-in capital increase deal for Taesung, through collaboration with iM Bank.
Muyong Sung, CEO of iM Securities, stated, "This first-quarter performance rebound marks the beginning of a genuine shift through improvements in our business structure. In particular, if 2024 laid the groundwork for a return to profitability through management innovation and revenue structure improvement, then in 2025, we will complete a decisive turnaround and build a robust company by enhancing our fundamentals through management efficiency initiatives."
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