Korean financial firms are expanding their presence in New York and London through localization and differentiation strategies. Korea Investment & Securities' New York entity KIS US focuses on middle-market loans with deal sizes of 200-300 billion won, while Mirae Asset Securities established a digital asset team. As of the end of last year, 19 Korean securities and asset management firms operate in New York, up from 15 five years prior. The expansion follows strong performance in Korean stocks, with Samsung Securities and the Korea Exchange planning a joint marketing tour in October covering London, Stockholm, Milan, and Zurich. London Stock Exchange Group offers fee waivers to Korean brokers, and UK platform Freetrade saw Samsung Electronics GDR rankings rise from 491st early this year to 168th in June.
Korea Investment & Securities and Mirae Asset Pursue Niche Markets in New York
Korea Investment & Securities' New York entity KIS US concentrates on middle-market loans, a direct lending product for small and mid-sized companies requiring funds for refinancing, mergers and acquisitions, or operations. The firm raises capital from non-bank financial institutions and invests in loan form. Woo Yeon-gwang, head of KIS US, stated the deal size ranges from 200-300 billion won with high interest rates yielding strong profitability, adding the firm is considering ways to strengthen competitiveness in middle-market loans. KIS US targets this segment as a niche where large financial institutions face participation restrictions.
Mirae Asset Securities' New York office established a digital asset team in response to the New York Stock Exchange's move to build a 24-hour tokenization-based trading platform. The firm prioritizes securing new revenue streams through innovative products. Mirae Asset Management's ETF subsidiary Global X employs product innovation as its core competitive weapon. Pedro Palandrani, head of product and research at Global X, cited the company's defense ETF (ticker SHLD) as an example, which excludes Boeing and invests in Palantir to differentiate from competitors like iShares US Aerospace & Defense (ITA). He stated that US investors increasingly make targeted and intentional investments in specific themes, similar to Korean retail investors, emphasizing the importance of not replicating existing strategies. Global X's assets under management grew from $8.1 billion at the time of Mirae Asset Group's 2018 acquisition to over $100 billion in June, a roughly 13-fold increase.
Samsung Securities Launches Integrated Account Service and Plans European Tour
Samsung Securities operates an integrated foreign account service with US online brokerage Interactive Brokers (IBKR) starting in May, broadening channels for US retail investors to directly invest in Korean stocks. The firm partners with local institutions to attract investors to the Korean market.
In London, Samsung Securities' role has evolved from order-routing broker to comprehensive salesperson explaining the Korean capital market. The firm held a joint Korea Capital Market Conference with the Korea Exchange at the end of last year. In October, Samsung Securities and KRX plan a joint marketing tour starting in London and continuing through Stockholm, Milan, and Zurich. The tour will introduce Korean companies and provide overviews of the Korean stock market and investment environment. Cho Wan-jin, head of Samsung Securities' London office, noted that inquiries previously focused on corporate earnings now center on the Korean capital market as a core topic.
European Platforms Report Rising Interest in Korean Stocks
London Stock Exchange Group provides incentives to Korean securities firms including trading fee waivers and real-time quote fee exemptions. UK asset manager Leverage Shares, which listed a 3x leveraged SK Hynix ETF on the London Stock Exchange on the 12th of last month, directly visited Korean securities firms before product launch to introduce the offering and gauge market response and investment demand.
UK online securities platform Freetrade shows heightened retail investor interest in Korean stocks. During the first three weeks of June, two ETF products — MSCI Korea and Franklin FTSE Korea — entered the top 50 most-traded securities. Samsung Electronics Global Depositary Receipts ranked as the 491st most-purchased security on the Freetrade platform early this year, rising to 168th in June. Duncan Ferris, Freetrade analyst, attributed the interest to users' preference for US technology stocks related to artificial intelligence infrastructure, which extends to Korea as a key node in the global semiconductor supply chain. He stated that as long as AI investment demand persists, Korea will remain an attractive market for investors seeking technology stock exposure or country-level diversification.
FAQ
How many Korean financial firms operate in New York?
As of the end of last year, 19 Korean securities and asset management firms maintain local offices or branches in New York, an increase from 15 firms five years prior.
What is Korea Investment & Securities' strategy in the US market?
Korea Investment & Securities' New York entity KIS US focuses on middle-market loans, a direct lending product for small and mid-sized companies. Deal sizes range from 200-300 billion won with high interest rates, targeting a niche segment where large financial institutions face participation restrictions.
When is Samsung Securities planning its European marketing tour?
Samsung Securities and the Korea Exchange plan a joint marketing tour in October, starting in London and continuing through Stockholm, Milan, and Zurich to introduce Korean companies and the Korean capital market to European investors.
