Reforms to South Korea’s capital markets aim to invigorate the industry and spur the growth of the country’s investment banks. The domestic market, however, is fiercely competitive, with more than 60 securities companies chasing the same business in an environment that is squeezing margins. Against this backdrop, financial holding companies that operate a securities company and a commercial bank are reconsidering their strategies to adjust to the changes, with many of them eyeing international expansion.
Conditions in the domestic market are tough, with 62 securities companies struggling to differentiate themselves. According to South Korea's Financial Supervisory Service (FSS), net income for the industry came to Won119.2bn ($11m) in the first quarter of fiscal 2013, a significant drop from the preceding quarter’s figure of Won446.1bn.
