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Photo = Kiwoom Securities |
[Alpha Biz= Ellie Kim] Kiwoom Securities is facing criticism for generating substantial interest income from short-term loans extended to investors ahead of stock settlement, with interest rates reaching as high as 9.5% annually.
According to data submitted by the Financial Supervisory Service to Rep. Kim Sang-hoon of the National Assembly’s Political Affairs Committee, the combined interest income from stock sale-backed loans at the top 10 brokerage firms totaled ₩53.59 billion between January and April this year. This represents 81.3% of last year’s full-year total of ₩65.89 billion.
Among the firms, Kiwoom Securities accounted for more than half of the total, generating ₩31.32 billion in interest income, followed by Mirae Asset Securities with ₩16.7 billion. Other firms, including Samsung Securities, Shinhan Investment Corp, and Daishin Securities, have already surpassed their full-year 2024 interest income levels within the first four months of this year.
Market participants attribute the surge in interest income to a sharp increase in trading volume amid a strong equity market rally in the first quarter. According to data from the Korea Exchange, the average daily trading value in the domestic market rose from ₩23.77 trillion at the end of last year to ₩51.01 trillion as of April 30, more than doubling over the period.
Under the standard T+2 settlement system, investors receive proceeds from stock sales two days after the transaction. During this period, investors seeking immediate liquidity may use loans backed by pending settlement proceeds. These funds are often used for purposes such as covering unsettled margin balances or funding additional investments in other accounts.
Interest rates for such stock sale-backed loans at major brokerages range from 8% to 10% annually. NH Investment & Securities offers the highest rate at 10.0%, followed by Shinhan Investment Corp (9.85%), Kiwoom Securities (9.50%), and Mirae Asset Securities and Samsung Securities (9.00%).
In contrast, interest rates paid by brokerages on investor deposits—such as customer cash balances and derivatives margin deposits—range from 0.7% to 2.0%, resulting in a gap of up to 9 percentage points.
While brokerages maintain that such rates reflect operational and risk management costs, critics argue that the loans are secured by stock sale proceeds and therefore carry relatively low risk, making the high interest rates difficult to justify.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
