South Korean brokerages posted record results last year on the back of a boom in the domestic stock market.

Data on provisional 2025 operating results for securities and futures firms released on March 26 by the Financial Supervisory Service showed annual net profit at 61 brokerages rose 38.9 percent from a year earlier to 9.65 trillion won, up 2.70 trillion won from 6.94 trillion won.

The watchdog said this was the highest on record, surpassing the 2021 net profit of 9.09 trillion won posted during the COVID-19 period amid a retail-investor boom dubbed the “Donghak ant movement”. The KOSPI rose 76 percent last year.

Fee income in the same year came to 16.62 trillion won, up 3.66 trillion won, or 28.3 percent, from 12.95 trillion won a year earlier.

Brokerage commissions totalled 8.60 trillion won, up 2.34 trillion won, or 37.3 percent, from a year earlier, accounting for most of the results as trading values for domestic and overseas stocks increased. Trading values for domestic and overseas stocks rose 36.0 percent and 24.3 percent, respectively, from a year earlier.

Fees in the wealth management segment rose 26.4 percent to 1.63 trillion won as income from fund sales and discretionary investment management increased. Investment banking fees rose 9.2 percent to 4.09 trillion won.

Proprietary trading profit and loss at brokerages edged up 1.4 percent from 12.58 trillion won a year earlier.

Profit and loss on stocks and funds, including exchange-traded funds, surged 1545.6 percent to 1.00 trillion won as domestic indexes rose. But derivatives-related profit and loss fell by a further 7.19 trillion won, resulting in an 8.67 trillion won loss, and bond profit and loss also fell 2.66 trillion won, or 19.9 percent, due to higher interest rates.

Profit and loss on other assets rose 2.15 trillion won, or 72.2 percent, to 5.12 trillion won. The won-dollar exchange rate fell to the 1,430 won range at end-2025, lifting foreign currency-related profit and loss by 1.69 trillion won, and expanded credit provision increased loan interest income by 461.3 billion won.

Total assets at brokerages rose 25.0 percent from the end of the previous year to 943.9 trillion won, an increase of 188.7 trillion won.

The net capital ratio, a financial soundness indicator, averaged 915.1 percent, up 113.9 percentage points from 801.2 percent at end-2024. All brokerages were above the regulatory ratio of at least 100 percent.

The average leverage ratio rose 37.3 percentage points over the same period to 693.7 percent. All brokerages also met the regulatory ratio of no more than 1,100 percent.

Net profit at 3 futures firms rose 10.8 percent from a year earlier to 88.6 billion won, up 8.64 billion won, as the stock market rallied last year.

The Financial Supervisory Service said there were concerns that domestic and external uncertainty could increase, with stock prices swinging sharply due to war in the Middle East and market interest rates rising. It said it would strengthen brokerages’ loss-absorption capacity and risk management capabilities, including by improving the method for calculating the net capital ratio (NCR).