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.

South Korea\'s National Tax Service has launched an irregular tax audit into Meritz Securities after spotting suspected tax evasion. Investigators from the Seoul Regional Tax Office’s Investigation Bureau 4 visited the firm’s headquarters in Seoul’s Yeongdeungpo district to secure accounting and other materials needed for the probe. The move comes three days after similar audits began at Hana Financial Group and Hana Bank, prompting attention to a possible expansion across the wider financial industry.