🍠 Why is Korea Financial Group's performance hot but its stock price cold? - 2026.07.21

Korea Financial Group's current situation is quite peculiar. Earnings seem sky-high, but the stock price has dropped by 17% from its peak ^[1]. It closed at 219,000 KRW today, up 1.15% ^[2], but the polarization within the securities sector remains stark. While Kiwoom Securities fell, Hanwha Financial Group rose, so we need to pay closer attention to individual stock trends.

Why are the earnings called 'record-breaking'?

Let's break down the numbers step by step. The consensus on combined operating profit for South Korea's top five major securities firms in Q2 was estimated at 5.1278 trillion KRW ^[3]. This represents a staggering 141.3% increase year-over-year ^[4]. With trading volumes surging, there is little doubt that securities firms' earnings are soaring. In particular, Hanwha Financial Group is showing resilience against macro variables, growing not just in its IB segment but also in retail ^[5].

Analysts vs. Market Sentiment: Divergent Views

Here, the perspectives of Onion and Peanut clash head-on. Best analysts predicted that if the AI concentration trend eases, Hanwha Financial Group could rise by at least 30% ^[5]. On the other hand, the current stock price is sluggish due to supply and demand concentrated in semiconductor stocks ^[1]. Onion sees this strong earnings performance as a powerful driver for resolving undervaluation. However, Peanut points out risks related to M&A issues and market sentiment uncertainty. Goguma summarizes it like this: while volatility may exist in the short term, the mid-to-long-term earnings foundation is solid. The key will be when the AI concentration eases.

Hanwha Securities Goes All-In on Customer Lock-in with 'Children's Accounts'

It's not just about good earnings. Its subsidiary, Korea Investment & Securities, has launched a new service to lock in customers. They introduced a 'Children's Account Integration' menu in their MTS app to support managing minor children's assets in one place ^[6]. Parents can now easily check their children's investment status. Additionally, they will host a 'Summer Vacation Youth Stock & Economics Class' from August 11th to 12th ^[7]. Carrot views this not just as a small-scale event but as part of strengthening long-term customer foundations. Improving financial literacy among younger generations ultimately leads to securing future customers.

Warning from the CEO of Hanwha Trust & Investment

Finally, remarks by Bae Jae-gyu, CEO of Korea Investment Trust Management, have drawn attention. He warned that investments in individual stock leveraged and inverse ETFs should stop ^[8]. Hanwha Trust & Investment maintains third place in the domestic ETF market under the 'ACE' brand, and this warning appears intended to foster a healthy investment culture amidst market volatility. Goguma interprets this as a positive signal for market stability.

Ultimately, Hanwha Financial Group has a 'solid floor' based on earnings, but the stock price hasn't fully reflected that value yet. We need to watch how the easing of AI concentration and customer lock-in strategies play out. 🍠

📰 Reference News (8)

1

Securities stocks down 40% from peaks despite record earnings outlook... Will they rebound in H2?

네이버뉴스 · 2026.07.21

📰 View original

2

[Up & Down] Securities stocks rise, Korea Financial Group ↑ · Kiwoom Securities ↓

네이버뉴스 · 2026.07.21

📰 View original

3

Top 5 Securities Firms Forecast Q2 Operating Profit of 5 Trillion Won... "Soaring Trading Volumes Drive Securities Earnings Higher"

네이버뉴스 · 2026.07.20

📰 View original

4

Securities Firms Go All-In on Customer Lock-in to Defend Earnings Amid Market Volatility

네이버뉴스 · 2026.07.21

📰 View original

5

"If AI Concentration Eases, It Will Jump at Least 30%"... Best Analyst's Top Pick for H2 [2026 H1 Best Analyst Recommended Strategy ①]

네이버뉴스 · 2026.07.21

📰 View original

6

Korea Investment & Securities Introduces Children's Account Integration Menu... Supports Minor Asset Management - News Lock

뉴스락 · 2026.07.21

📰 View original

7

[The Value Briefing] Today's Korea Investment & Securities News... Youth Economics Class, Children's Account Integration Menu

네이버뉴스 · 2026.07.21

📰 View original

8

Bae Jae-gyu, CEO of Hanwha Trust & Investment: "Stop Investing in Individual Stock Leveraged and Inverse ETFs"

네이버뉴스 · 2026.07.21

📰 View original