Mirae Asset, Korea Investment Vie in Digital Assets; KB, NH Boost IB, WM

South Korean securities firms are accelerating the reorganization of their business portfolios to break away from a profit structure centered on brokerage services (commissioned trading).

Competition in the digital asset market is intensifying, led by Mirae Asset Group and Korea Investment & Securities. KB Securities and NH Investment & Securities are focusing on strengthening their profit base centered on Investment Banking (IB) and Wealth Management (WM), while organizing digital infrastructure in preparation for the institutionalization of security tokens (STO). Shinhan Investment Corp. is expanding its group-wide digital finance strategy through participation in STO consortia and the establishment of blockchain-based platforms in the digital asset sector.

Hana Securities is pursuing profit diversification through overseas market expansion in Southeast Asia, infrastructure investment, and corporate finance, while maintaining a global and IB-centric strategy. Our Investment Securities, since its relaunch, is focusing on restoring comprehensive financial functions, re-establishing its foundation centered on corporate finance and real estate finance.

Small and medium-sized securities firms are also seeking competitiveness through distinct specialized strategies. Hanyang Securities is maintaining an IB strategy focused on real estate PF (Project Financing) and structured finance deals, continuing a selective investment approach. LS Securities is expanding corporate finance opportunities related to industries and energy such as secondary batteries, power, and infrastructure, based on its ties with LS Group affiliates. IBK Investment & Securities is building its IB foundation by leveraging its strengths in mid-sized enterprise finance and policy-based corporate finance.

The industry views these moves by securities firms as the beginning of a platform competition. Analysis suggests that building integrated financial platforms encompassing trading, issuance, distribution, and asset management, rather than just selling products, has emerged as a core competitive edge.

Concerns exist regarding the significant regulatory uncertainty in the digital asset space. In the process of expanding IB, risk management, such as managing exposure to real estate finance, is considered a variable. Global business is assessed as difficult to yield short-term results due to intense local market competition and high regulatory barriers. While securities firms are adopting different strategies, the ultimate goal is seen as securing new revenue streams. The key, according to analysis, is not just how many new businesses are launched, but whether they can be converted into stable revenue sources.