Kiwoom Securities President Lee Hyun Reappointed... "Enhancing Asset Management Capabilities... Focusing on Diversifying Profitability"

Last Year Operating Profit of 1 Trillion KRW... Leap to 3rd Place in the Industry

[Asia Economy Reporter Park Jihwan] Lee Hyun, CEO of Kiwoom Securities, has succeeded in a three-year term extension. The challenge ahead is whether the company can succeed in diversifying profitability beyond its retail-based business foundation.

Kiwoom Securities held a shareholders' meeting on the 29th and passed the agenda for reappointing CEO Lee as an inside director. Lee has been a founding member since the beginning of Kiwoom Securities. He served as director of Kiwoom.com Securities in January 2000, then as vice president of Kiwoom Securities, CEO of Kiwoom Savings Bank, and CEO of Kiwoom Investment Asset Management before being appointed CEO of Kiwoom Securities in January 2018.

Lee's reappointment is largely due to the record-breaking performance since his inauguration. Operating profit, which was 289 billion KRW in 2018 when Lee took office, rose 235% to 969 billion KRW last year. Especially last year, benefiting from the Donghak Ant Movement, operating profit approached 1 trillion KRW, propelling the company to third place in the industry.

As the top player in the domestic stock market share, Kiwoom Securities greatly benefited from the retail sector. Last year, the number of new accounts opened at Kiwoom Securities was 3.33 million, a 4.9-fold increase compared to 680,000 the previous year. The retail stock trading market share increased from 29.2% in 2019 to 29.8% in 2020, and overseas stocks rose from 5.8% to 24.9%.

However, the strength in the retail sector is also considered Kiwoom Securities' biggest weakness. This is because the business structure's profitability can vary depending on economic conditions. If trading volume decreases due to a sluggish stock market, performance can be immediately impacted.

Rather than waiting for a stock market boom like last year, CEO Lee is attempting to diversify profitability through business expansion. This year, the management keywords are enhancing asset management capabilities, establishing a comprehensive financial investment business operator base, and strengthening digital infrastructure. The ambition is to transform from a retail-focused business model to a financial investment platform company combined with asset management.

First, in the first half of the year, an online asset management platform utilizing robo-advisors will be launched. This service provides financial technology and asset management tailored to investors' characteristics through data analysis. Development of the next-generation Mobile Trading System (MTS), scheduled for release in the second half of the year, is also underway. The amount invested in development alone reaches the 10 billion KRW level. The goal is for customers to satisfy all financial needs, including domestic and international financial products, simply by accessing the MTS.

Kiwoom Securities is also aiming to be designated as a comprehensive financial investment business operator by 2022. Through designation as a comprehensive investment business operator with a capital of 3 trillion KRW, the plan is to grow Kiwoom Securities into a mega investment bank (IB). CEO Lee stated, "This year, we plan to focus on reviewing and entering new businesses such as the foreign exchange market, as well as building the foundation for comprehensive investment business operators, including PBS (prime brokerage services) and corporate credit extension."

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