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Photo = Yonhap news |
[Alpha Biz= Paul Lee] In the face of rising stock market volatility, Korea’s largest institutional investor, the National Pension Service (NPS), has increased its holdings in securities, petrochemicals, and cosmetics sectors in the first quarter of 2025. Meanwhile, domestic securities firms are focusing on high-dividend stocks such as banks and REITs to secure stable cash flows.
According to the Korea Exchange on May 1, the NPS raised its stakes in securities firms, notably increasing its ownership in Korea Financial Holdings (the parent of Korea Investment & Securities) from 9.73% to 11.80%, and in Mirae Asset Securities by about 1 percentage point.
Large brokerage stocks have seen strong performance driven by rising earnings expectations from overseas stock trading fees and anticipated interest rate cuts. Korea Financial Holdings shares have surged over 16% this year, and Mirae Asset Securities recently hit a new all-time high, jumping 9.02% on April 30 to close at 11,850 KRW.
Despite sluggish industry conditions, the NPS also expanded its stakes in petrochemical companies in anticipation of a value recovery aided by government policy support and a potential industry rebound. It increased holdings in LG Chem (from 7.60% to 8.64%), Kumho Petrochemical (from 9.72% to 10.60%), and Lotte Fine Chemical (from 7.86% to 8.89%).
In addition, the NPS showed interest in the globally well-received K-beauty sector. It raised its stake in leading cosmetics firm Amorepacific from 6.40% to 7.42% and in contract manufacturer Korea Kolmar from 11.84% to 13.47%.
In contrast, brokerage firms with shorter investment horizons are favoring high-dividend stocks for long-term holding to secure stable returns. Korea Investment & Securities has held Industrial Bank of Korea (IBK) shares since 2005 without selling any, benefiting from IBK’s steady 30%-range dividend payout. The firm also retains long-term stakes in Woori Financial Group and NICE Holdings.
Samsung Securities holds significant positions in REITs such as Koramco The One REITs. Mirae Asset Securities' largest investment is in Naver, stemming from a 500 billion KRW share swap deal in 2017. As of the end of last year, its book value stood at 559.9 billion KRW, generating nearly 60 billion KRW in gains.
Brokerages also hold diverse equity positions for strategic purposes related to their investment banking businesses, including IPO underwriting. For example, Mirae Asset Securities owns shares in companies such as Sanil Electric, IK Semicon, Innospace, Bankware Global, HNS Hitech, and Clobot. Kiwoom Securities has long held shares in Wisebirds (a digital advertising agency), Saramin (a recruitment platform), and Woori Financial Group. KB Securities owns shares in numerous KONEX-listed companies such as Bluetop, Genotech, Stemlab, and You2Bio.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
