🍠 Korea Investment Holdings: M&A Puzzles and Supply-Demand Battles Amid Strong Earnings Outlook - 2026.07.29

Hello, this is Team Leader Gogu-ma of Bultagi. 🍠 Today, I want to talk about Korea Investment Holdings, a stock currently drawing the most intense and divided attention in the market.

📈 Strong Earnings and New Business, A Running Tandem

'Carrot' is focusing on earnings and new business momentum. As major brokerage firms are projected to see a significant jump in net profit attributable to controlling interests compared to the same period last year ^[4], some analysts suggest that Korea Investment Holdings' annual operating profit forecast has been revised upward thanks to the benefits of AI investment, even amidst the market plunge in the second half of the year ^[2].

Furthermore, its subsidiary, Korea Investment & Securities, is entering the yuan-denominated bond market to secure foreign currency liquidity ^[5] and has launched a stock trading service linked with the virtual asset exchange 'Coinone' app ^[6]. 'Dotori' also analyzes these moves as creating a positive synergy through platform partnerships and diversification of funding.

⚖️ The M&A Puzzle and Divergent Views

However, there is a point where the perspectives of 'Onion' and 'Peanut' clash head-on: the M&A issue. Regarding recent reports on the pursuit of acquiring Lotte Insurance, the company officially clarified, "We are reviewing the acquisition, but nothing has been decided at this time" ^[1]. It is a very important puzzle piece in the group's strategy to expand its non-banking sector.

Interestingly, there is a regulatory variable involved as well. It has been highlighted that while the government's bill to prohibit three consecutive terms for financial holding company executives applies to bank-affiliated groups, non-banking financial groups like Korea Investment Holdings are excluded ^[7].

🎯 Shedding the Undervalued Label and Supply-Demand Battles

Ultimately, the market's standard is cold. Despite the overall rise in brokerage stocks, the stock price closed lower on the 27th ^[8], and the closing price on the 29th fell to ₩183,000, showing volatility.

'Peanut' points out that with the current Price-to-Book Ratio (PBR) at the 0.7x level, Return on Equity (ROE) and shareholder returns will truly separate the wheat from the chaff rather than simple undervaluation appeal ^[3].

Gogu-ma summarizes the four opinions as follows: 🤝 A bullish scenario based on earnings outlook and platform expansion coexists tightly with a bearish scenario driven by M&A uncertainty and supply-demand battles. Ultimately, the core question remains: which direction will the scale tip depending on whether the Lotte Insurance acquisition is finalized and what the actual shareholder return policy will be?

📰 Reference News (8)

1

Major Disclosures Before Market Open on July 29 - Seoul Finance

네이버뉴스 · 2026.07.29

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2

Stock market facing a downturn in the second half... Earnings forecasts downgraded for 4 out of 10 listed companies

네이버뉴스 · 2026.07.28

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3

The low-PBR formula for brokerage stocks is broken... ROE and shareholder returns will separate the winners

네이버뉴스 · 2026.07.29

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4

Is the era of trading volume over?... Changed investment methods for brokerage stocks

네이버뉴스 · 2026.07.29

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5

[Live Corporate TALK] Korea Investment & Securities enhances corporate finance competitiveness and breaks boundaries between virtual assets and stock markets

네이버뉴스 · 2026.07.28

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6

Korea Investment & Securities launches domestic stock trading service linked with virtual asset exchange 'Coinone' app - Mild Economy

마일드경제 · 2026.07.27

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7

[Kim Ui-seok's Thoughts] The Three-Term Prohibition Bill that makes K-Finance third-rate - Korea Finance News

네이버뉴스 · 2026.07.29

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8

[Up & Down] Brokerage stocks rise, Meritz Financial Group↑·Korea Investment Holdings↓

네이버뉴스 · 2026.07.27

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