KYOBO SECURITIES CO., LTD. – Company Intelligence Brief

1. Business Overview

Kyobo Securities is a South Korean financial services firm operating as a securities brokerage and investment house. Based on the balance sheet composition, the company's primary business segments include:

• Trading and Investment: Financial assets measured at fair value through profit or loss totaled KRW 11,243 billion as of end-2024, representing approximately 71% of total assets
• Brokerage Operations: Customer deposits (예수부채) reached KRW 1,462 billion, up 42% year-over-year, indicating active retail and institutional client trading activity
• Lending and Financing: The firm maintains a significant borrowed debt portfolio of KRW 5,134 billion, suggesting substantial repo, securities financing, and margin lending operations

The company operates as a full-service securities house typical of mid-tier Korean brokerages, with diversified revenue streams from trading, commissions, and interest income.

2. Financial Trends

Revenue declining but profitability improving paradox: Revenues fell 15.4% to KRW 3,166 billion in 2024 from KRW 3,743 billion in 2023, continuing a downward trend from the KRW 4,066 billion peak in 2022. Despite this revenue contraction, net income nearly doubled to KRW 117.7 billion in 2024 from KRW 67.6 billion in 2023, indicating significant cost rationalization or margin expansion.

Profitability metrics: Pre-tax income surged 79% to KRW 153.8 billion. Interest income grew 22% to KRW 502 billion while interest expense rose 20% to KRW 224 billion, maintaining a healthy net interest spread.

Leverage and capital: Total assets reached KRW 15,898 billion, with liabilities at KRW 13,913 billion, yielding a debt-to-equity ratio of 7.0x—high but typical for securities firms. Borrowed debt decreased 12% to KRW 5,134 billion, suggesting deliberate deleveraging. Retained earnings grew 12% to KRW 1,100 billion, indicating strong capital accumulation.

3. Ownership Structure

The filing does not provide detailed shareholder breakdown or foreign ownership percentage data. Share capital remained unchanged at KRW 569.8 billion between 2023-2024, indicating no capital raises or major equity transactions during the period.

[TRANSLATION NOTE] The company name "KYOBO SECURITIES CO., LTD." and account line items have been translated from Korean; ownership details are not present in the provided financial statement extracts.

4. Key Risks

Market exposure concentration: With KRW 11.2 trillion in fair-value financial assets (71% of total assets), the firm faces substantial mark-to-market risk from equity and bond market volatility. This concentration is significantly higher than typical diversified financial institutions.

Revenue volatility and uncertain earnings sustainability: The 22% revenue decline over two years (2022-2024) combined with simultaneous profit doubling raises questions about earnings quality and whether current profitability depends on non-recurring gains or unsustainable cost cuts rather than franchise strength.

5. Investment Consideration

Kyobo Securities presents a deleveraging, margin-expanding story with strong recent profitability despite revenue headwinds, but investors must assess whether improved earnings reflect sustainable operational improvements or temporary market-related gains given the firm's heavy trading asset concentration.