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Kiwoom Securities has established a dedicated artificial intelligence (AI) team under its strategic planning division and recruited an AI expert from Shinhan Bank. This move aims not only to develop AI-based products but also to focus on risk management, such as preventing incomplete sales, to avoid a recurrence of the Hong Kong H-Index equity-linked securities (ELS) incident. As AI technology advances, securities firms are increasingly launching services that combine AI technology with investment information provision and asset management, not just Kiwoom Securities.

According to Kiwoom Securities on the 29th, the company established the AI-dedicated team called 'AIX' under the strategic planning division, which oversees business strategy, earlier this year. They also recruited external talent from Shinhan Bank to lead the team. Currently, the AIX team consists of three employees, and the company plans to expand the team further.

Kiwoom Securities offers its self-developed AI robo-advisor (RA) service called 'KiwooGo,' but plans to integrate AI with investment in the future to help find investment strategies tailored to customer preferences and to provide investment information by creating a financial product platform on mobile and online. In particular, they are planning to apply AI technology to their mobile trading service (MTS) 'YoungwoongmunS#' to develop it into an investment platform that provides information related to overseas product investments for everyone from novice investors to professional investors. Kiwoom Securities holds the number one position in the domestic retail sector with its MTS platforms ‘YoungwoongmunS#’ and ‘YoungwoongmunS,’ so advancing AI technology to develop the platform is expected to also aid in personalized customer management.

They also plan to utilize AI for risk management. Noting that the incomplete sales of ELS linked to the Hong Kong H-Index were due to negligence in risk management, Kiwoom Securities intends to use AI to prevent damages caused by incomplete sales. A Kiwoom Securities official stated, "We plan to design and manage key items through the development of risk management algorithms to reduce risks without limiting customer services."

Movements to use AI for providing investment information are being observed across the securities industry. Mirae Asset Securities recently published corporate analysis reports generated by AI. Mirae Asset Securities showcased materials analyzing quarterly earnings of companies such as Apple, Starbucks, and ExxonMobil using AI. Thanks to AI, the time required for analysis and report writing, which used to take about five hours after corporate earnings announcements, has been reduced to 5 to 15 minutes.

KB Securities introduced the ‘Stock AI’ service in March this year, applying generative AI to its mobile trading system (MTS) ‘Marvel Mini’ to provide two-way customized investment information. NH Investment & Securities also launched the ‘GPT Newsletter Service’ in July last year, which translates and summarizes overseas corporate disclosures using AI.

Some securities firms adopted AI early on. Korea Investment & Securities introduced AI to the research report sector for the first time in the industry by launching the ‘AIR (AI Research)’ service in 2020. Samsung Securities partnered with AI startup DeepBrain to replicate the appearance and voice of active analysts, creating the industry's first virtual analyst in May 2022.

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