Kiwoom Securities, Corporate Credit Rating Upgraded……Rising as a Strong Player in Online Stock Trading

Korea’s corporate evaluation agency announced on the 16th that it has upgraded Kiwoom Securities’ credit rating from “AA-” to “AA.” This reflects Kiwoom Securities’ continued strong competitiveness in online stock trading brokerage and improving profitability.

In particular, the credit ratings for Kiwoom Securities’ unsecured corporate bonds and derivative-linked bonds have also been upgraded to “Stable.” This is due to its capital strength and the impact of newly approved commercial paper business, indicating that the previously relatively weak asset management and corporate finance sectors are expanding their investment scale. As a result, Kiwoom Securities recorded a net operating profit share of 7.3% last year, ranking among the top five in the industry.

It is expected that this performance improvement will continue in the future, further enhancing Kiwoom Securities’ market position. Although business expansion involves increased risk exposure, its strategy of maintaining a low-risk asset ratio has been positively evaluated.

However, it is necessary to closely monitor the potential risks associated with the commercial paper business approved at the end of last year. In particular, the obligations related to corporate finance and risk capital supply may lead to increased risk exposure.

Therefore, Kiwoom Securities’ competitiveness and financial stability management are expected to become important variables in the future stock market. How these changes and responses will continue is worth watching.