Brokerages expand global alliances as Koreans invest more in US stocks
Korean securities firms are ramping up partnerships and expanding operations in the United States, driven by a surge in overseas retail investment and intensifying competition, industry officials said Sunday.
Hana Securities will host a seminar on Oct. 27 featuring two analysts from Los Angeles-based brokerage Wedbush to discuss market trends and artificial intelligence.
The event follows Hana’s strategic tie-up with Wedbush last year, when it acquired a 2.2 percent stake in the U.S. brokerage. Hana now uses Wedbush as its local broker and offers clients access to its research.
Kakao Pay Securities is also in talks with New York-based Siebert Financial to collaborate on U.S. stock brokerage, AI-driven trading and digital asset infrastructure. Its parent company, Kakao Pay, has acquired a 19.9 percent stake in Siebert and holds a board seat.
Korean demand for U.S. stocks continues to rise. As of Thursday, domestic investors held $160 billion in overseas equities, with about 90 percent allocated to U.S. markets, according to the Korea Securities Depository.
“With overseas stock holdings hitting record highs each year, the U.S. market has become so crucial and competitive that securities firms can no longer afford to overlook it,” an industry official said.
Some are setting up local subsidiaries in the U.S. to further strengthen their foothold.
Most Korean brokerages execute overseas stock orders through local partners and pay commissions in the process. Securing a direct broker-dealer license, however, can reduce intermediary fees and improve risk management by minimizing trade errors and order delays.
Additionally, U.S. subsidiaries could serve as a foundation for building strategic networks and facilitating entry into investment banking.
In May, Kiwoom Securities established a U.S. holding company and an operating unit. The firm is also eyeing the acquisition of a Shinhan Securities entity that holds a U.S. brokerage license, bypassing the regulatory process for new entrants, if the acquisition goes through.
Toss Securities began full-scale operations in June after its U.S. unit, TSAF, obtained a broker-dealer license. Korea Investment & Securities recently injected an additional 377.1 billion won into its American subsidiary to accelerate growth.
Small firms are also joining the push. Next Securities plans to launch a Delaware-based unit, Next Market, with $1 million in initial capital. The firm is also deepening ties with Siebert Financial to launch an AI-powered investment solution, and is planning to offer technology consulting in the U.S. market.
