South Korean brokerages that posted record first-half results are expected to see a sharp slowdown in third-quarter earnings, hit by weaker brokerage revenue as stock trading turnover falls and by valuation losses in trading amid higher market rates and greater volatility. Investment banking is also seen offering limited support. Among five major firms, combined controlling shareholder net profit is forecast at about 1.063 trillion won, down 44.9 percent from a year earlier and 76.6 percent from the previous quarter.

South Korean brokerage shares that surged in the first half are sliding as the stock market weakens. Falling trading value and worries over slower third-quarter earnings are weighing on prices. Daily average trading value in the third quarter fell 41.7 percent from the previous quarter, with ETF and overseas stock trading also declining. The market estimates combined third-quarter net profit at five major brokerages fell sharply year on year. Dividends and shareholder-return policies could support any rebound.