Major securities firms’ investments in other companies using their own capital through proprietary investment (PI) units more than doubled in size over the past year, data showed.
Valuation gains and losses booked last year alone exceeded 2 trillion won. Their PI activities also spanned a wide range of assets, from shares of listed companies to stakes in unlisted firms and investments in private equity funds.
With stock markets in major economies enjoying a broad-based rally—such as the KOSPI surpassing the 7,800 mark—brokerages’ PI-related valuation gains are expected to surge further this year.
A view of the securities industry / Chosun DB
According to an analysis of business reports filed on the Financial Supervisory Service’s electronic disclosure system (DART) on the 12th, the top 10 securities firms—Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, Samsung Securities, Meritz Securities, KB Securities, Hana Securities, Kiwoom Securities, Shinhan Securities, and Daishin Securities—posted combined equity investments in other companies totaling 1.8171 trillion won last year. That figure marks an 82.6% increase from the previous year’s 994.9 billion won. Valuation gains and losses—reflecting changes in the value of stakes held—expanded 597.9%, from 309.1 billion won to 2.1573 trillion won.
By firm, Korea Investment & Securities recorded the largest PI-related valuation gains and losses at 893.2 billion won. The company that contributed most to the rise in valuation gains and losses (excluding affiliates and companies in which it participates in management) was Woori Financial Group, generating 341.5 billion won in valuation gains and losses. Korea Investment & Securities has been benefiting from valuation gains for a decade after joining the privatization process of Woori Bank in 2016 as a consortium shareholder, securing a 4% stake (now 3.7%). Its cumulative return has reached 133.3%.
Overseas investments also delivered sizable gains. In September last year, Korea Investment & Securities made a capital commitment to “Korea Investment Global Private Investment” and booked 276.3 billion won in valuation gains and losses. The vehicle is a private equity fund (PEF)-type entity established to invest in global new-growth sectors such as artificial intelligence (AI), semiconductors, and biotech. As it is a private fund, its portfolio holdings have not been disclosed.
The “Korea Investment Re-Up II Fund,” which invests in U.S. unicorns—unlisted companies valued at $1 billion or more—also ranked among the top performers, with 9.6 billion won in valuation gains and losses. Korea Investment & Securities has invested 69.8 billion won in the fund since 2022 for a 16.6% stake, and it is said to include partial exposure to companies such as Anthropic and xAI.
Meanwhile, the “Korea Investment Continuation I Fund,” into which Korea Investment & Securities has poured 24.0 billion won since 2024 for an 80.0% stake, invests in SpaceX by purchasing secondary shares held by SpaceX employees.
Increase in proprietary investment (PI) by the top 10 securities firms last year and related valuation gains and losses / By Yoon Seung-jun
It also booked 130.0 billion won in valuation gains and losses from the “Welltosea Investment No. 2” private equity fund (PEF), which holds assets including defense parts maker MNC Solution. In addition, it holds stakes in a range of domestic unlisted companies, including SK On (0.7%), Lotte Global Logistics (14.0%), Kakao Mobility (0.2%), Zigbang (0.5%), and preferred shares in Viva Republica.
Mirae Asset Securities posted sizable valuation gains and losses from the Naver Group. Of its 155.9 billion won in valuation gains and losses last year, profits from Naver and Naver Financial came to 122.8 billion won and 35.4 billion won, respectively. Mirae Asset Securities invested 500.0 billion won in Naver (a 1.8% stake) in 2017 and 679.3 billion won in Naver Financial (25.5%) in 2020. Compared with the book value at the end of last year, the cumulative return stands at about 36.5% and 69.6%, respectively. Naver Financial is set to merge with Dunamu, the parent company of cryptocurrency exchange Upbit. If the post-merger joint venture pursues a U.S. listing, the book value of Mirae Asset Securities’ stake in Naver Financial is expected to rise further.
Fund investments also delivered strong results. It earned 16.0 billion won from the “Mirae Asset–LG Electronics New Growth Investment Partnership No. 1,” which invests in promising startups at home and abroad, and 11.3 billion won from the “Mirae Asset–KT&G New Growth Investment Partnership No. 1,” which focuses on healthcare, ESG and new-growth companies. While valuation gains and losses have not yet been recognized, Mirae Asset is investing in global space company SpaceX through the “Mirae Asset Global Space Investment Partnership No. 1” (89.57% stake) and the “Mirae Asset Global Sector Leader Investment Partnership No. 1” (95.12%). Those positions could generate larger valuation gains and losses if SpaceX lists.
Kiwoom Securities posted 372.0 billion won in valuation gains and losses last year, recording sizable profits from Woori Financial Group (341.5 billion won) as well as PEFs such as “Vision Private Equity Partnership” (2.6 billion won) and “Helios No. 8 Private Equity Partnership” (2.5 billion won). NH Investment & Securities, which posted 192.7 billion won in valuation gains and losses last year, cited key investments including the “Intervest Deep Tech Investment Partnership” (12.0 billion won)—a fund that invests in deep tech, biotech, AI and ICT companies—and convertible preferred shares of Alteogen, a KOSDAQ-listed firm (9.9 billion won). Elsewhere, Samsung Securities recorded sizable valuation gains and losses from Rznomics (23.5 billion won), KB Securities from KB Balhae Infrastructure (7.3 billion won), and Daishin Securities from Samsung C&T (122.5 billion won).
Key companies in brokerages’ proprietary investment (PI), by securities firm / By Yoon Seung-jun
Brokerages’ valuation gains and losses from proprietary investment (PI) are expected to grow further this year, as equity markets—where securities firms allocate much of their PI capital—continue to hit fresh highs amid an AI-driven semiconductor boom. Market capitalization among listed companies in Korea has been on the rise.
As of the 8th, the combined market value of 72 listed companies in which the top 10 securities firms held stakes (based on year-end holdings; excluding affiliates and companies in which they participate in management) stood at 3.2898 trillion won, up 12.9% from the 2.9133 trillion won book value recorded at the end of last year.
The market value of Samsung C&T held by Daishin Securities reached 522.3 billion won (based on market capitalization), up 76.5% from its year-end book value of 318.6 billion won. Over the same period and under the same criteria, LG Corp. (74.2 billion won) rose 35.0%, Shinhan Financial Group (11.8 billion won) gained 27.6%, and S2W (1.3 billion won) surged 108.4%. Daishin Securities began investing in Samsung C&T in 2022, and its cumulative investment return over roughly four years has reached 282.2% (306.2 billion won).
Since the start of the year, Korea Investment & Securities has posted investment returns of 73.9% on TiumBio (1.6 billion won), 49.6% on Mujin Medi (0.6 billion won), 23.4% on Kolon Life Science (1.9 billion won), and 17.3% on Woori Financial Group (888.3 billion won). Elsewhere, Mirae Asset Securities recorded a 33.6% return on CMTX (2.2 billion won); NH Investment & Securities, 54.8% on Kiwoom Securities (29.9 billion won); Samsung Securities, 17.3% on Koramco The One REIT (20.4 billion won); KB Securities, 23.7% on Chunbo (54.5 billion won); and Hana Securities, 43.4% on Innospace (0.6 billion won).
While PI investments at brokerages are likely to increase, some observers say the pace of expansion will be limited. Lee Seok-hoon, a senior research fellow at the Korea Capital Market Institute, said demand remains strong for funding and capital-raising by innovative companies and that government policies—aimed at promoting “productive finance” and venture-capital investment—include risk-weight calculation measures and various support programs, creating a favorable investment environment. “However, investing in innovative companies involves information asymmetry, and unless that is addressed, it could become a burden from a risk-management perspective,” he said.
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