NICE Investors Service Upgrades Kiwoom Securities' Long-Term Credit Rating from 'AA-' to 'AA'

"Strong Profitability in Brokerage Business
Expanding Business Base Including Investment Banking"

NICE Investors Service announced on March 16 that it has upgraded the long-term credit rating of Kiwoom Securities from AA- to AA.

On the same day, NICE Investors Service also raised the ratings for Kiwoom Securities’ equity-linked bond (ELB), other derivatives-linked bonds, and senior unsecured bonds from AA- (Positive) to AA (Stable). The rating for subordinated unsecured bonds was also upgraded from A+ (Positive) to AA- (Stable).

The upgrade in the long-term credit rating reflects Kiwoom Securities’ strong profitability centered on brokerage business and its differentiated capital size compared to its peers, thanks to cumulative earnings.

NICE Investors Service stated, “Benefiting from a strong competitive position in the retail segment, Kiwoom Securities has been the biggest beneficiary among securities firms from the expansion of the stock market base and the increase in non-face-to-face account openings and trading volume since COVID-19, leading to a further expansion of its business foundation. Even amid increased volatility from external factors such as recent geopolitical risks, the average trading volume has remained robust at a higher level compared to the past.”

They added, “Despite the recent high volatility in financial markets and intensifying competition among major investment banks, Kiwoom Securities is expected to continue demonstrating strong profitability through its outstanding market position in brokerage, ongoing expansion of its investment banking business, and increased operations via issuance of promissory notes.”

From 2021 to 2025, Kiwoom Securities’ annual net profit reached 703.7 billion won, significantly higher than the average for securities firms with an AA- rating (236.3 billion won). As profits accumulated, the company’s equity capital grew to 6.1 trillion won last year, nearly double the average among AA- rated securities firms (3.2 trillion won).

The expansion of business areas such as investment banking and promissory note issuance was also reflected in the rating upgrade. NICE Investors Service commented, “Kiwoom Securities is diversifying its revenue structure, which has been focused on brokerage, by expanding into investment banking, principal investment, and financial product sales. Since acquiring approval for promissory note issuance, the company has been able to diversify its funding channels, and its operational capacity is also expected to expand.”

However, NICE Investors Service noted regarding promissory note issuance, “A rapid increase in risk appetite could pose a burden to financial stability. We will continue to monitor the impact of further promissory note expansion on the company’s profitability and capital adequacy.”

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