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[Alpha Biz=(Chicago) Reporter Paul Lee] The number of local branches of new securities firms has decreased by about 40 in the past year, the report showed.
According to the Korea Financial Investment Association on the 29th, the number of branches in Korea as of the end of the first quarter of this year was 798, down 37 from 835 a year ago.
The largest number of branches has been reduced by 14 from 43 to 29. Shinhan Investment & Securities Co. and Yuanta Securities Co. each cut five, while Hanwha Investment & Securities Co. and Kyobo Securities Co. also cut four. In addition, Korea Investment & Securities (3), NH Investment & Securities (2), Daishin Securities (2), and IBK Investment & Securities (2) also reduced the number of branches.
The domestic branch of securities firms has been on the decline since the 1,000 line was broken for the first time in 2018. This is due to the decrease in the number of customers visiting branches as mobile trading system (MTS) transactions have become mainstream due to the popularization of smartphones. In addition, the business structure of securities firms, which relied heavily on brokerage profits in the past, has also diversified, reducing the need to operate several branches by spending rent and other operating expenses.
As a result, securities firms are integrating nearby branches to become large and hub. The intention is to bring together private bankers (PBs) specialized in various fields such as stocks and bonds so that customers can easily receive various services at one branch.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
