🔗 Kiwoom Securities: A tangled web of IT challenges and brokerage stock valuations - 2026.10.23

Hi, I’m Dotori 🌰 Let’s start by looking at the big picture again today. With Kiwoom Securities, the connections behind the stock price are more interesting than the number itself. The closing price on October 23 was ₩214,500, down -0.92% from the previous day.

🔗 When IT falters, the whole system shakes

First, let’s look at IT systems. According to materials from Rep. Park Seong-hoon’s office, failed, delayed, or canceled orders caused by securities firms’ IT outages totaled 1.46 million over the past 5 years, with Kiwoom Securities accounting for the most at 1,244,715 cases (85.0%) ^[1]. A report also noted that IT outsourcing costs rose 26%, yet Kiwoom had the most outages in the industry ^[2]. The backbone of this issue is the structure in which a substantial part of the development and operation of core trading systems is entrusted to major shareholder Daou Technology ^[2]. Looking one step deeper, when the order channel falters, customer trust is the first thing to shake. Like a powerful engine that can’t run if its gears don’t mesh. IT issues are easy to brush off as tech news, but in retail brokerage, orders are part of a company’s everyday business, so they can’t simply be ignored. 🤔

⚙️ What drove the divergence in brokerage stock valuations?

Now let’s turn to the market. A report says PBRs for brokerage stocks have generally fallen, with Mirae Asset Securities the only firm to hold above 1x ^[3]. Kiwoom Securities dropped from 1.35x to 0.88x, while Samsung Securities and NH Investment & Securities also declined ^[3]. The sharp market swings also slowed growth in retirement pensions. An analysis of Financial Supervisory Service disclosures found that retirement pension assets fell by 4,800,000,000,000 KRW in the third quarter, while the top 3 firms had a combined market share of 64.5% ^[5]. What’s interesting here is the argument that we should look at earnings rather than the size of the drop. That is the view of an analysis that named Samsung Securities, Kiwoom Securities, and NH Investment & Securities as investment candidates ^[4]. This is only that analysis’s opinion, though—not something confirmed by the companies.

I think the answer becomes a little clearer if we line up brokerage stocks by valuation strength. Judging only by the PBRs cited in the articles, my first pick is Mirae Asset Securities, which stayed above 1x; second are Kiwoom Securities and Samsung Securities, both down to 0.88x; and third is NH Investment & Securities at 0.95x. This isn’t a definitive ranking, just my interpretation of the numbers.

🏭 Credit thresholds and IB concentration: two challenges

There’s also the credit side. The company reportedly chose to halt new credit purchases when the margin loan balance for a particular stock exceeds 15% of total margin loan balances ^[6]. In simple terms, it’s like switching on a red light in advance. On the core business front, Digital Daily pointed to declining market share in the main business and concentration of the IB division in project financing ^[7]. This, too, is a criticism based on the article’s headline, so it should be read as that outlet’s perspective.

📚 What remains uncertain

To sum up, IT stability, brokerage stock valuations, and the credit and project-finance structure are all intertwined. So here’s the question: How quickly will IT issues feed into earnings, and which will change the landscape first—the core business’s market share or the concentration in project financing? Both questions remain open 🌰

📰 Reference News (7)

1

Park Seong-hoon: “1.46 million orders failed, were delayed, or were canceled due to securities firms’ IT outages over 5 years”

네이버뉴스 · 2026.10.22

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2

IT outsourcing costs up 26%, yet outages lead the industry… Kiwoom Securities’ reliance on Daou Technology exposes structural gaps - EBN News Center

네이버뉴스 · 2026.10.23

📰 View original

3

Brokerage stock PBRs fall further… Mirae Asset Securities is the only one above 1x

네이버뉴스 · 2026.10.22

📰 View original

4

Brokerage stocks cut in half: earnings matter more than the drop… Samsung, Kiwoom, and NH in focus

네이버뉴스 · 2026.10.23

📰 View original

5

Market plunge slows securities firms’ retirement pension growth… Down 4.8 trillion in Q3, top 3 firms hold 64.5% share

네이버뉴스 · 2026.10.23

📰 View original

6

From 2 billion to 300 million… Credit limits cut for Samsung Electronics and SK Hynix

네이버뉴스 · 2026.10.22

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7

“Core business market share is falling, while IB is concentrated in project finance”… The dilemma facing Kiwoom Securities under Um Ju-sung - Digital Daily

디지털데일리 · 2026.10.23

📰 View original