KTB Investment & Securities Reports 89.8 Billion KRW Net Profit Last Year... Record High for 2 Consecutive Years

First Pre-Tax Profit Exceeds 100 Billion KRW Since Securities Firm Conversion
Subsidiaries Also Grow Together... Successful Investments in KTB Network, Xiaopeng, Berkeley Lights, and More

[Asia Economy Reporter Minwoo Lee] KTB Investment & Securities recorded its highest-ever profits for the second consecutive year, showing balanced growth across all business divisions including bonds, investment banking (IB), and proprietary investment (PI).

KTB Investment & Securities announced on the 1st that it posted consolidated sales of 534.6 billion KRW and operating profit of 64 billion KRW last year. These figures represent increases of 40.3% and 70.5%, respectively, compared to the previous year. Net profit also rose 78.8% year-on-year to 89.8 billion KRW, marking a record high for the second consecutive year. Pre-tax profit reached 112.8 billion KRW, surpassing 100 billion KRW for the first time since the company transitioned to a securities firm in 2008.

The balanced growth across all business divisions was a key factor. The bond division expanded its revenue base by broadening its product range beyond traditional bond brokerage to include structured bonds and hybrid capital securities. The PI division achieved high gains from asset disposals and valuations through public offerings and fund investments. The IB division focused on risk management and pursued conservative operations centered on high-quality deals, resulting in stable earnings.

The improved performance of subsidiaries was also notable. KTB Network, a venture capital (VC) firm, achieved record-high profits since its corporate split in 2008. Operating profit rose 181.4% year-on-year to 44.6 billion KRW, and net profit increased 134.5% to 35.5 billion KRW.

Profits from asset recoveries and high success fees drove the performance growth. KTB Network realized over 100 billion KRW in recovery gains from funds by partially disposing of high-yield investment assets such as Viva Republica, the operator of the simple remittance service Toss, as well as Nextin and PeopleBio. Additionally, overseas portfolio companies Berkeley Lights and Xpeng were listed on the U.S. stock market, generating fund valuation gains of 62.6 million USD (approximately 68 billion KRW) as of the end of December last year.

Since pioneering overseas expansion, KTB Network currently manages over 300 million USD in overseas funds. As of the end of December last year, assets under management (AUM) stood at 1.1645 trillion KRW, placing it among large-scale VCs with over one trillion KRW in AUM. Furthermore, Toss (Viva Republica), an existing investment, continues to increase in corporate value. 'Woowa Brothers,' the service provider of 'Baedal Minjok,' is expected to realize investment returns through an upcoming merger and acquisition, anticipating significant growth this year as well.

KTB Asset Management also saw operating profit rise 69.5% year-on-year to 8.1 billion KRW and pre-tax profit increase 30.7% to 8.2 billion KRW. This growth was attributed to asset increases in stock-related products and higher fees from real estate fund sales. This year, the company plans to continue growth by expanding assets under management in traditional strategic products and alternative investment products such as public REITs (real estate investment trusts).

A KTB Investment & Securities official stated, "We will expand overseas investments and advance digital new businesses through synergy among affiliates to create new revenue sources in the post-COVID-19 era."

This content was produced with the assistance of AI translation services.