South Korean securities firms are accelerating their overseas expansion, operating a total of 93 overseas outposts across 15 countries as of the end of last year, according to data released by the Financial Supervisory Service (FSS). The expansion is heavily concentrated in Asia, which accounts for 71% of the global footprint, even as major financial houses diversify their entry strategies through newly established subsidiaries and cross-border acquisitions.
According to the FSS report on December 18, the 93 overseas points of presence comprise 83 local subsidiaries and 10 representative offices operated by 16 domestic brokerages. Asian markets lead the geographic distribution with 66 outposts, spanning major financial hubs like Hong Kong, China, and Singapore. Meanwhile, the United States hosts 18 points of presence, and the United Kingdom accounts for seven.
Global Expansion Trends and Financial Performance
The network expanded by a net 13 outposts over the course of the year, with 14 new branches opening and one closing. Expansion activity included four new openings in the United States, three in Hong Kong, and two in India. According to the FSS, the push into the U.S. and Hong Kong, alongside emerging destinations like India, marks a structural shift away from a traditional reliance on Southeast Asia toward a more diversified global footprint.
Financial performance across these international hubs improved significantly. According to FSS data, overseas local subsidiaries generated a combined net profit of $455,800,000 (approximately 6540 billion won) last year, representing a 67.8% increase compared to the previous year. These overseas earnings accounted for 8.7% of the total net income reported by South Korean securities companies.
Meritz, Mirae Asset, and Toss Pursue Distinct Entry Strategies
Brokerages are deploying different approaches to capture international growth. Meritz증권, which previously stood as the only major South Korean securities firm among the top ten without an overseas base, is preparing to establish its first foreign entity in Hong Kong. According to the financial investment industry, Meritz is targeting a launch in the second half of the year to focus on bond trading and alternative investment assets. The planned Hong Kong entity will source cross-border deals and handle brokerage operations to support the headquarters’ investment banking (IB) and sales and trading (S&T) divisions, with executive leadership already designated and professional staff currently being recruited.
In contrast, Mirae Asset증권 and Toss증권 are looking toward Japan through potential mergers and acquisitions. Mirae Asset confirmed in a regulatory filing on December 27 that it is reviewing the acquisition of a local Japanese securities firm independently of Toss증권. Mirae Asset stated that specific acquisition targets have not yet been finalized and committed to re-disclosing details upon confirmation or within one month. Foreign media reports indicate that both Mirae Asset and Toss are evaluating business performance and acquisition terms for three to four potential Japanese targets.
Catalysts and Regulatory Risks in the Japanese Market
The sudden interest in Japan stems from structural changes in its capital markets. Driven by corporate governance reforms and expanded shareholder return policies, foreign investors poured funds into Japanese equities, pushing foreign net purchases to a record 11조엔 (approximately 96 trillion won) in the first half of the year. Mirae Asset already holds a foothold in the country through Global X Japan, a joint venture established with Daiwa Securities Group in 2019.
At the same time, pursuing market entry via local acquisitions carries distinct regulatory risks. A prominent cautionary tale involves a Chinese-backed fintech brokerage that acquired 100% of Japan’s Hibiki Securities in 2022 to secure a license and rapidly expanded its mobile-centric client base. However, after mislabeling U.S. exchange-traded funds and exchange-traded notes, the firm faced administrative disciplinary action from Japan’s Financial Services Agency in June. Industry observers note that failing to strictly adhere to local compliance standards can sharply elevate regulatory exposure for foreign entrants.
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