A surge in South Korean stock market turnover is making securities subsidiaries a key earnings driver for financial holding companies. Average daily turnover in the second quarter is estimated at 89.6 trillion won, up 28.6 percent from the first quarter, with May topping 100 trillion won for the first time. Brokerages are expected to post sharp profit gains, supporting non-interest income. Risks include bond valuation losses, higher credit costs and tighter rules on single-stock leveraged products.

Korea Exchange will strengthen post-listing oversight of KOSDAQ companies listed under technology and profit-unrealised special tracks and set a basis for running a system to publish lists of low price-to-book ratio firms. It will also refine rules for listings involving issuers of multiple-voting shares. The exchange said revised listing rules and detailed regulations take effect from July 2 as follow-up measures to initiatives to boost trust and innovation in KOSDAQ and improve capital market fundamentals.