Brokers - Korea: 2Q26 preview: solid earnings, but fair value still being reassessed

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Brokers - Korea: 2Q26 preview: solid earnings, but fair value still being reassessed

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Brokers - Korea

2Q26 preview: solid earnings, but fair

value still being reassessed

Price Objective Change

Expect record 2Q26 earnings ahead 03 July 2026

We expect Korean brokers to report record-high earnings in 2Q26, with the ongoing Equity

increase in market turnover directly benefiting brokerage, WM, interest income and Republic of Korea

trading. IB commission is likely to see only modest growth, given still limited Securities Broker/Dealer

underwriting activity, though we expect a QoQ increase off a low base in 1Q26. For Jisun Lee >>

Mirae in particular, we expect its innovative company investments to provide a Research Analyst

meaningful earnings boost in 2Q26. Merrill+82 2 3707Lynch0418(Seoul)

jisun.lee@bofa.com

Solid domestic, improving overseas turnover

Domestic turnover came in at W10,932tn in 2Q26, up 39% QoQ, driven primarily by a

36% QoQ increase in market cap. Turnover velocity also ticked up to 6.23x in 2Q26 from Exhibit 1: PO revisions

6.09x in 1Q26, though the pace of increase lagged the rise in market cap. With KOSPI PO change summary

rally increasingly concentrated in AI-related large-cap names, we believe this reflects a Company PO Old (W) PO New (W)

buy-and-hold bias among retail investors rather than a pickup in active trading. Another Kiwoom 595,000 540,000

visible trend was the recovery in overseas turnover, which rebounded 14% QoQ in 2Q26 Mirae 80,000 67,700

after softening in 1Q26. With the 100% tax exemption on RIA accounts expiring at end- Source: BofA Global Research estimates

May, we believe most of the repatriation flow back onshore had already largely played BofA GLOBAL RESEARCH