NH Investment & Securities on the 8th said Kiwoom Securities will cement its position as this year's No. 1 retail player. It kept a Buy rating and a target price of 700,000 won. Kiwoom Securities' previous close was 466,000 won.
Recently, investors have shown strong interest in the progress of Kiwoom Securities' integrated account service for foreigners. Through the integrated account service, foreign investors will be able to trade domestic stocks without opening a separate domestic account.
Yoon Yu-dong, an analyst at NH Investment & Securities, said, "On Feb. Kiwoom Securities signed a partnership with U.S. online broker Webull through its U.S. subsidiary and plans to launch the service at the end of the third quarter," adding, "The system is currently being built."
Talks are also reportedly underway for a partnership with Japanese online broker Rakuten. Starting with the United States and Japan, the scope is expected to expand to major countries over time.
Yoon said, "For reference, Kiwoom Securities pays 2 basis points out of about 9 basis points in overseas stock trading brokerage fees to the inter-broker. When the service was first introduced, it was more than 5 basis points, but as trading value increased, bargaining power strengthened and the figure gradually fell," adding, "The integrated account fee rate is expected to follow a similar pattern."
Kiwoom Securities plans to focus on expanding its retail investor base by enhancing customer convenience rather than engaging in short-term price competition to increase market share in the industry.
Kiwoom Securities' HeroM trading system platform will be revamped to be friendly for exchange-traded fund (ETF) transactions, and the retirement pension service to be launched on June 1 is also expected to provide a differentiated trading environment on the revamped platform.
Yoon said, "Kiwoom Securities aims to enter the top five in the industry," adding, "On Sept. 14, the Korea Exchange (KRX) will implement extended trading hours, and Kiwoom Securities, which has a high share of retail investors, is expected to benefit."