With South Korea's KOSPI breaking above 5,700 for the first time and also topping 5,800, brokerage stocks have emerged as beneficiaries of the latest market rise.

The KOSPI ended the session at 5,808.53, up 131.28 points, or 2.31 percent, from the previous close. It opened at 5,696.89, up 19.64 points, or 0.35 percent, and kept rising through the day, briefly jumping to 5,809.91 at 2:37 p.m.

The KOSPI's momentum shows no sign of slowing even as uncertainty rises over the U.S. economy and artificial intelligence after the Lunar New Year holiday. In the rally at home, brokerage shares are drawing attention within the financial sector, which has been on a tear since the start of the year.

Much of the strength in brokerage stocks reflects the renewed focus on earnings leverage in brokerage commissions as trading value surges. Industry data showed average daily trading value in January 2026 was 42.0 trillion won on KRX and 20.4 trillion won on NXT, for a combined 62.3 trillion won, a record high on a monthly basis.

Average daily trading value in the domestic stock market in January 2026 was 62.3 trillion won, up 89.1 percent from the previous month, and expanded to around 80 trillion won based on the most recent 5 sessions.

As trading value levels up, expectations for better brokerage fees and interest income, which account for 45 to 65 percent of securities firms' net operating revenue, are quickly reflected in share prices.

Sector indicators outperformed the broader market. Last month, the KRX securities index rose 43.0 percent, beating the KOSPI's return by about 19.0 percentage points.

The uptrend continued into February. The KRX securities index surged 74.26 percent year-to-date through the 13th, the biggest gain among the exchange's industry indices. Some interpret the move as recalling the 1988 "three-low boom" period, when brokerage shares emerged as late-cycle leaders.

Eun Taek Lee (이은택), an analyst at KB Securities, said, "In the 1988 'three-low boom,' brokerage shares were key stocks dubbed the 'troika stocks' that led the latter part of the rally as trading value, margin loans and IPOs increased." He added, "Even after the recent surge, they have not surpassed the peak at the time, which raises expectations for a rerating."

The strength spread from large brokerages to mid- and small-sized firms.

On the 19th, just after the holiday ended, Mirae Asset Securities jumped 14.45 percent to 70,500 won, hitting a 52-week high. SK Securities, SangSangIn Securities, Hyundai Motor Securities, Hanwha Investment & Securities and Eugene Investment & Securities also surged and hit their daily upper limits.

Some also say that expectations for stronger shareholder returns, including mandatory cancellation of treasury shares, worked in favor of brokerage stocks during discussions on revising the Commercial Act.

Brokerage firms' view of the rally as a "rerating phase" rather than simple trading is also reflected in supply-demand and sidelined cash indicators. It said customer deposits stood at 106 trillion won and margin loan balances at 56.4 trillion won in January 2026, up 20.7 percent and 9.9 percent from the previous month, respectively.

With expectations continuing for capital market stimulus policies such as measures to revitalize the KOSDAQ market and the Digital Asset Basic Act, unprecedented indicators appeared, including customer deposits topping 100 trillion won and average daily trading value exceeding 60 trillion won.

Business momentum is also a factor lifting valuation premiums for the brokerage sector.

Mirae Asset Securities has risen 83.1 percent since the start of the year, helped by expectations for a SpaceX listing and the emergence of the digital asset market. The industry assessed that, beyond the surge in trading value, the expansion potential of new businesses such as digital assets is pushing brokerage sector valuations into a new territory.

Earnings forecasts are also clearly moving higher.

According to financial data provider FnGuide, the combined 2025 annual operating profit forecast for five brokerages - Korea Investment & Securities, Mirae Asset Securities, Kiwoom Securities, Samsung Securities and NH Investment & Securities - is 8.02 trillion won.

If trading value stays at high levels, profit capacity centered on brokerage could step up again in 2026, observers say.

Still, a risk cited is that share price sensitivity is high during periods of rising volatility.

Citing a case on the 2nd when the brokerage sector fell 6.6 percent along with a broader market decline, it said short-term volatility looks inevitable because recent earnings forecast upgrades are ultimately based on higher trading value forecasts.

Another factor outside sector conditions is potential risk linked to real estate project financing, though some say concerns are easing, particularly among large firms.

Key points to watch next include whether the brokerage rally will lead to a virtuous cycle of "trading value to earnings to shareholder returns" and whether new businesses such as KOSDAQ revitalization and digital assets will support a valuation rerating.

A securities industry official said, "Right now most brokerage stocks are surging, so it does not seem like whether earnings are good or bad is playing an important role in the rise in share prices." The official added, "As a third revision to the Commercial Act looks likely to pass the National Assembly soon, we need to keep an eye on developments at brokerages with a high proportion of treasury shares."