Brokerages' net plunges on bearish stock market

SEOUL, March 9 (Yonhap) -- Total earnings of securities firms in South Korea
tumbled 60.2 percent in the first three quarters of fiscal 2008 as commission
income declined amid slumping stock markets, the financial watchdog said Monday.
The combined net profit of 61 local securities firms and foreign branches reached
1.4 trillion won (US$922.2 million) in the April-December period, compared with
3.6 trillion won a year earlier, the Financial Supervisory Service said. They
close their books on March 31.
"Commission income declined 33.3 percent on-year to 3.6 trillion won as stock
trading remained sluggish," the watchdog said. South Korea's share prices fell 34
percent in the cited period as global stock selloffs prompted foreigners to pull
their money out of the Korean market.
The average return on earnings (ROE), a measure of profitability, stood at 6
percent in the April-December period, sharply down from 19.1 percent a year ago,
it added.
The combined assets reached 140.7 trillion won as of the end of last year, up
10.8 percent from a year earlier, the watchdog said.
Currently, 61 brokerage companies operate in South Korea, including 21 foreign
players.
sooyeon@yna.co.kr
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