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Financial investment services

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Overview

Before the Act's implementation, businesses engaged in the financial investment industry continued to operate under the names securities firms, asset management companies, investment advisory companies, and futures companies. Multiple business units may be freely chosen and run as long as the entrance conditions established for each function are satisfied.
The Domestic Capital Market and Financial Investment Business Act divides the financial investment industry into six different categories : investment trading, investment brokerage, collective investment, investment advice, discretionary investment, and trust business.

The following list outlines the range of each subfield's work.

Specific field, Work field
Specific field Work field
Dealing
  • Buying, issuing, or underwriting financial investment items for one's own account, as well as soliciting, providing, or accepting subscriptions
Brokerage
  • Buying, issuing, or underwriting financial investment items for others account, as well as soliciting, providing, or accepting subscriptions
Collective investment services
  • Investments acquired without daily management instructions from investors from two or more investors,
    The objective of the business is to purchase, sell, or otherwise manage
    investment assets having a market value and then return the proceeds to investors
Investment advisory services
  • Conducting business in response to recommendations for financial investment products and other investment judgments regarding the worth of investment target assets as specified by Presidential Decree, financial investment products, etc.
Discretionary investment services
  • At the investor's option, get all or part of the investment judgment for financial investment products, etc.; pursuing a company through the purchase, sale, or management of financial investment goods, etc. while taking the investor's property status, investment goal, etc. into consideration
Trust services
  • Establishing trust as business
The following chart shows the current state of the company's key financial and managerial indicators for the Financial investment services.
Securities companies
(Unit: KRW trillion, %)
Securities companies, Division, 2019, 2020, 2021, 2022, 2023
Division 2019 2020 2021 2022 2023
Total assets 482.9 610.1 621.0 608 686.9
Total equity 61.8 67.8 77.6 80.2 85.3
Net Capital Ratio(NCR) 555.9 698.6 744.2 708.9 734.9
Net income 4.89 5.90 9.09 4.51 5.79
Return on Equity(ROE) 8.3 9.1 12.5 5.8 7.6
Asset management companies
(Unit: KRW trillion)
Asset management companies, Division, 2019, 2020, 2021, 2022, 2023
Division 2019 2020 2021 2022 2023
Asset under management 1,136.5 1,197.8 1,322.2 1,397.9 1,482.6
Depository 649.6 691.9 785.7 831.1 924.8
- Public offering fund
 237.2 256.2 285.1 275.5 392.2
- Private offering fund
 412.4 435.7 500.6 555.6 595.6
Discretionary investment contract 486.9 505.9 536.5 566.8 557.8
Net income 0.82 1.30 2.16 2.85 4.7
Investment advisory companies
(Unit: KRW trillion, %)
Investment advisory companies, Division, End of 03/2019, End of 03/2020, End of 03/2021, End of 03/2022, 2023
Division End of 03/2019 End of 03/2020 End of 03/2021 End of 03/2022 2023
Contract 15.2 12.2 14.5 17.6 19.1
- Advisory contract
 8.5 7.8 10.0 13.4 14.9
- Discretionary contract
 6.7 4.4 4.5 4.2 4.2
Net income(KRW 100million) 76 -377 2,426 1,478 -603
Return on Equity(ROE) 1.3 -7.5 39 17.9 -7
Futures companies
(Unit: 100million KRW, %)
Futures companies, Division, 2019, 2020, 2021, 2022, 2023
Division 2019 2020 2021 2022 2023
Total assets 31,581 46,407 49,130 59,229 55,830
Equity capital 4,332 4,792 5,194 5,845 6,371
Net income 261 343 340 531 927.7
Return on Equity(ROE) 6.7 7.5 6.8 9.6 15.6
You can check the list of member companies and industry statistics through the website of the self-regulatory organization (association).
Reference : Financial Investment Association (www.kofia.or.kr)
- Source : Capital Markets and Financial Investment Business Act│Collective Investment Business and Collective Investment Securities Sales Business Authorization, Registration, etc., Financial Supervisory Service│Comprehensive Table by Unit of Authorization for Investment Trading and Investment Brokerage Business, Financial Supervisory Service│Financial Investment Association

Why Financal Investment in Seoul

  • Taking part in exchanges abroad icon Taking part in exchanges abroad icon Taking part in exchanges abroad icon
    Taking part in exchanges abroad

    The NASDAQ listing of Coupang has raised awareness of offshore listings for potential start-ups.

  • Investment alternatives icon Investment alternatives icon Investment alternatives icon
    Investment alternatives

    The domestic market has a wide range of assets under management, including stocks, bonds, real estate, and alternative investments.

  • Financial hub icon Financial hub icon Financial hub icon
    Financial hub

    As the financial hub of Korea, Seoul is densely clustered with various financial institutions.

    In particular, Yeouido, where SFH is located, is the financial center of Seoul.

  • Social credibility icon Social credibility icon Social credibility icon
    Social credibility

    In the domestic market, the delinquency rates and bankruptcy rates are low, and the recovery rates is high, so social credibility is high.

  • Market knowledge icon Market knowledge icon Market knowledge icon
    Market knowledge

    Participants in the domestic market have a high level of financial literacy, and the securities sector is popular.

  • IPO market icon IPO market icon IPO market icon
    IPO market

    In terms of the number of public offering companies and the size of the public offering, the size of the domestic IPO market is growing rapidly.

  • Financial regulatory sandbox icon Financial regulatory sandbox icon Financial regulatory sandbox icon
    Financial regulatory sandbox

    By utilizing innovative financial services, it is possible to develop and support financial services that incorporates new technologies.

  • Networking opportunities icon Networking opportunities icon Networking opportunities icon
    Networking opportunities

    The Seoul Metropolitan Government holds the Seoul Financial Week and the Seoul International Financial Conference every year, so that network establishment is possible amongst financial institutions and companies.