💼 Kiwoom Securities' 1.5T PF Underwriting and Strong Earnings, Could It Be a Value Trap? - 2026.06.03

Hello. I'd like to ask if everyone's average account unit price is doing well. This is Peanut from Bultagi.com. Kiwoom Securities' recent moves have been quite aggressive. Moving beyond the number one spot in brokerage, they are expanding into IB and new businesses, but will this trend truly bring real profits to our portfolios. Let's take a cold, hard look.

💼 1.5 Trillion KRW Large-Scale PF Underwriting, A Long-Term Growth Engine?

Lotte E&C signed a 1.5 trillion KRW main PF agreement to develop the Bucheon Sangdong Homeplus site into a residential-commercial complex ^[1]. Here, Kiwoom Securities took the lead and raised 770 billion KRW in funds ^[1]. Successfully underwriting a large-scale fund amidst a real estate slump is certainly a notable IB achievement ^[6]. But is it really. I want to ask if it is verifiable that leading a large PF deal directly leads to an immediate increase in corporate value. With macroeconomic uncertainties still present, expanding real estate PF exposure always carries the risk of returning as a liability. Even in a bullish atmosphere, we must touch upon this bearish scenario at least once.

📉 Earnings Expectations and Stock Price Decoupling, A Potential Value Trap

There is a forecast that the combined controlling shareholder net profit of the top 5 major securities firms in the second quarter of this year will reach 3.235 trillion KRW, beating the market consensus by 13.2% ^[3]. Kiwoom Securities is also expected to post strong earnings. But what about the stock price trend. Kiwoom Securities' stock, which surged 41.80% in the first quarter, showed a 7.19% downward trend entering the second quarter ^[2]. Based on the closing price on June 2nd, it closed down 4.46% at 364,000 KRW. Despite a record-breaking increase in trading volume, supply and demand are concentrated on semiconductor and AI-related stocks, and as interest rate volatility increases, securities stocks are being thoroughly marginalized ^[2]. Although the industry conditions are positive thanks to abundant liquidity, concerns about deteriorating profitability in the bond trading sector are also being raised due to expanding interest rate volatility ^[2]. If you approach it blindly just because the earnings are good, there is a high possibility of falling into a value trap. From a short to medium-term swing perspective, I think it might be necessary to put it up as a profit-taking trim candidate and approach it conservatively.

⚠️ Defending Retail Market Share, Is It Enough?

There are also movements in the main retail business. Until the end of August, they are running an event offering up to a 90% discount on domestic futures and options trading fees for new and dormant customers ^[4], and they are also recruiting 50 people for the 20th customer panel for financial consumer protection and service improvement ^[5]. These are essential measures to defend brokerage fee income, but I am skeptical whether this alone can bring back the supply and demand of investors who have left for large AI stocks.

Peanut sees that Kiwoom Securities' aggressive IB expansion and its future settlement in the retirement pension market could be the key to a long-term valuation re-rating. However, considering the current interest rate volatility and the concentration of supply and demand, let's not forget that thorough risk vigilance is needed rather than hasty optimism.

📰 Reference News (6)

1

Homeplus Bucheon Sangdong Branch to Transform into a 49-Story Mixed-Use Complex

네이버뉴스 · 2026.06.02

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2

Securities Stocks Retreat Amid KOSPI Rally Due to Concentration in Leading Stocks and Rate Volatility

네이버뉴스 · 2026.06.03

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3

[EBN Today's Issues (2nd)] Jensen Huang: 'Vera Rubin Enters Mass Production'... Samsung & SK Hynix Ride AI Memory Supercycle, etc. - EBN News Center

네이버뉴스 · 2026.06.02

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4

[Securities & Now] Samsung Securities Offers Top Industry Stocks to New Customers...

네이버뉴스 · 2026.06.02

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5

Kiwoom Securities Recruits for '20th Customer Panel'

네이버뉴스 · 2026.06.03

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6

Lotte E&C Secures 1.5 Trillion Won PF for Homeplus Bucheon Sangdong Mixed-Use Development

네이버뉴스 · 2026.06.02

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