🔥 Kiwoom Securities: Between a Stock Rebound and Lowered Earnings Expectations - 2026.10.16

Well, look what we have here! ☕ Today, Kiwoom Securities has stock rebound talk and lowered earnings expectations on the same table. The October 16 closing price was ₩220,500, up +5.00% from the previous day. After sliding to ₩210,000 the day before, the rebound really stood out.

The stock rebounded—what’s behind it?

In a disclosure on the 16th, Kiwoom Securities said it had decided to acquire 8,160,853 shares of Hanwha Ocean for approximately 509,200,000,000 KRW ^[1]. That amounts to 7.58% of its equity capital, and its stake will be 2.73% after the acquisition. In my 30 years of watching the market, that’s a sizable deal—enough to make the market take notice. The article doesn’t say how the transaction will affect earnings, though, so I won’t jump to conclusions on that front.

The view in the securities industry is leaning toward a rebound. Lee Jong-hyung, head of Kiwoom Securities’ Research Center, assessed that a rebound is more likely than further declines at current levels ^[5]. Sisa Journal reported that Kiwoom Securities expects the KOSPI to form a bottom around the 5,100 level ^[6]. These are reported forecasts, so don’t take them as confirmed company facts.

Lower earnings expectations, but the results vary

According to FnGuide, third-quarter consolidated earnings estimates for five major South Korean securities firms, including Kiwoom Securities, have all been lowered. The outlook differs from firm to firm ^[4]. The article’s headline also notes that dividend appeal remains intact. Lower the bar, and now it’s easier to put your feet up? 😄 Just kidding—let’s simply remember that the direction of the estimates is down.

Retail funding—and interest rates are back in the conversation

Here I go getting excited again! According to an exclusive report, Kiwoom Securities is expected to receive support for a sale-proceeds loan that Korea Securities Finance is preparing to launch ^[2]. Kiwoom lowered the rate on its sale-proceeds secured loan once in August, so the question is whether this support will lead to another rate cut. Any room for rates to come down is welcome news for the market.

On the 8th of this month, Kiwoom also launched its “Hangeul Love Special Commercial Paper,” with a three-month maturity and an annual interest rate of 5.8% ^[3]. The total sales limit is 10,000,000,000 KRW, and the maximum subscription per person is 1,000,000 KRW. With rates moving in the 4–5% range, it’s the kind of product that could catch the eye of people looking for somewhere to put spare cash. Talking about market rates brings to mind a little wordplay: when a securities firm raises money through commercial paper, is it “paper chasing”? 😅 That’s enough joking around!

Here are the open questions

I see a clear bullish scenario in this story. But it depends on macro factors providing support. It remains to be seen whether the Hanwha Ocean acquisition will help lift earnings expectations again or remain just one event in a much bigger market. 🚀 We’ll also need to see whether rebound forecasts can hold up while securities firms’ earnings estimates are being revised down.

Let me leave you with a question. If retail rates and product competition heat up while earnings expectations remain low, where will Kiwoom Securities’ next set of numbers come from? That’s a question worth putting our heads together to think through.

📰 Reference News (6)

1

Kiwoom Securities decides to acquire Hanwha Ocean shares worth 509,200,000,000 KRW…stake to reach 2.73%

네이버뉴스 · 2026.10.16

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2

[Exclusive] Kiwoom Securities to receive support for sale-proceeds loans…will rates fall further?

네이버뉴스 · 2026.10.15

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3

Rates in the 4–5% range…“Should I put my spare cash into commercial paper?” [S Money+]

네이버뉴스 · 2026.10.16

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4

[N2 Focus] Securities firms’ third-quarter earnings expectations plunge…dividend appeal remains despite stocks being halved

네이버뉴스 · 2026.10.16

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6

KOSPI seen bottoming around 5,100…Kiwoom Securities: “Expect a technical rebound” - Sisa Journal

시사저널 · 2026.10.16

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