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Looking back on long-term trends in the Korean securities industry

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  • Looking back on long-term trends in the Korean securities industry
  • Lee, Seokhoon
  • Korea Capital Market Institute


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Title Looking back on long-term trends in the Korean securities industry
Similar Titles
Material Type Reports
Author(English)

Lee, Seokhoon

Publisher

[Seoul]:Korea Capital Market Institute

Date 2012-04
Series Title; No Capital Market Opinion
Pages 5
Subject Country South Korea(Asia and Pacific)
Language English
File Type Link
Subject Economy < Financial Policy
Holding KCMI

Abstract

Recent growth in Korean capital markets greatly expanded key segments of the securities sector. In addition to the Financial Investment Services and Capital Market Act (FSCMA), the introduction of related laws and relaxed regulations enabled the securities industry to diversify revenue sources. Despite favorable market conditions, however, the profitability of the domestic securities industry fell because of supply-side factors. The main contributors to the lower profitability were securities firms’ drastic capital increase, highly competitive market with many players, bigger deals in the investment banking segment and subsequent intensified competition among securities houses to build track records, and weaker cost-efficiency due to similar business models. In the current competitive landscape, however, securities companies can develop optimal business models, implement differentiated operating strategies, or develop their own markets. (The rest omitted)