Brokerages close unprofitable overseas branches
[THE INVESTOR] Korean securities companies have considerably reduced the number of their overseas branches over the past six years, data showed on June 13.
Thirteen local brokerages had a combined 57 overseas branches as of the end of March, compared with 89 branches six years earlier, according to the data from the Financial Supervisory Service and the Korea Financial Investment Association.
Mirae Asset Daewoo Securities had the most overseas branches with 14, followed byNH Investment & Securities with nine and Korea Investment & Securities with six.
About a decade ago, Korean securities companies began to tap into foreign countries in a bid to find new sources of revenue as the domestic stock market became saturated.
The number, however, had been on the decline since peaking at 89 in 2011, with the figure reaching 62 at the end of last year.
Industry watchers attributed the decline to their unprofitability, difficulties competing with large global investment banks and local brokerages’ lack of idle funds to be used in honing the competitiveness of overseas branches.
Meanwhile, local brokerages had a combined workforce of 35,824 at the end of March, down 7,540 from six years earlier.
By Alex Lee and newswires (firstname.lastname@example.org)