Toss Securities resolved at a regular shareholders meeting on the 26th to grant a total of 96,227 stock options to 183 executives and employees.
The exercise price is 86,000 won, a sharp increase from a year earlier, bringing the total size to about 8.3 billion won (an average of 45 million won per person). This is seen as reflecting a rise in corporate value driven by last year's improved results.
Eligible executives and employees can exercise the stock options for five years from Mar. 27, 2028, to Mar. 26, 2033. Chief Executive Kim Gyu-bin received the most with 6,600 shares (567.6 million won), and eight executives, including Chief Product Officer (PO) Ko Dong-wan, were granted 18,200 shares, or 19% of the total.
To grant stock options, Toss Securities has issued a total of 406,565 common shares to date. In particular, it concentrated grants last year, issuing 219,688 shares—about half of the total—worth about 5.5 billion won over two rounds.
Notably, this year's stock option exercise price is 3.4 times higher than last year's 25,000 won. The share price of an unlisted company is assessed per share by a weighted average of net asset value and net income value, and this is seen as the result of a sharp rise in corporate value thanks to Toss Securities' strong performance last year.
Last year, Toss Securities posted operating revenue, operating profit, and net profit of 882.6 billion won, 445.8 billion won, and 333.9 billion won, up 106.9%, 199.5%, and 154.5% from a year earlier. The jump was driven by a surge in fees and other revenue as more investors traded foreign stocks. The "total equity (net worth)/capital stock" ratio, which indicates the company's growth potential, also surged to 454.7% from 215.5% over the same period.
Stock options give corporate executives and employees the right to buy shares at a pre-agreed price, allowing them to expect gains by selling at a higher price if the share value rises. In practice, however, there is a limitation that Toss Securities would need to conduct an initial public offering (IPO) for holders to realize gains.
Some say the parent company's listing alone would lift the share value of Toss Securities. If the market revalues the group's overall corporate value, the value of core subsidiary Toss Securities would likely rise in tandem. With no clear over-the-counter quotation at present, a definitive valuation is also expected to positively affect future fundraising capacity and brand credibility.
Parent company Toss is preparing for a U.S. listing and is reportedly considering listing on the domestic stock market after the U.S. listing. Upon listing, Viva Republica's corporate value is estimated at between 10 trillion won and 20 trillion won. In particular, the performance of financial affiliates, including the bank and securities units, is expected to have a significant impact.
A securities industry official said, "Toss Securities is actively using a stock option program to compensate executives and employees, and the rise in the exercise price appears to reflect the company's growth and expectations for a future increase in value."