Korea Securities Finance Corporation (KSFC) is strengthening its capabilities as a growth platform in addition to playing its roles as a safety platform for the capital market.
“In times of capital market crisis, KSFC has maintained trust and provided a foundation for overcoming crises by providing liquidity and safely storing investor deposits,” said Kim Jung-gak, president of KSFC, at a press conference held in honor of the 70th anniversary of the company’s foundation held in Yeouido, Seoul on Sept. 16.
“We will step up our efforts to support a brighter future for the Korean capital market.”
Established in 1955, Korea Securities Finance Corporation has established itself as a safety net for the capital market for 70 years.
The supply of funds to securities firms, which began with approximately 7 million won in March 1956, expanded to an average of approximately 32 trillion won in the first half of this year.
Currently, the company is storing and managing approximately 87 trillion won in investor deposits.
Since last year, KSFC has been pursuing three management strategies - strengthening its role as a market safety net, globalization, and digitalization.
To achieve this, the company will continue to expand its liquidity supply to the capital market and support securities firms in utilizing their securities holdings by allowing them to use foreign currency stocks as collateral. It also plans to establish a crisis response liquidity supply program to enable a timely response to crises.
KSFC is also accelerating its globalization strategy. It will strengthen its foreign currency business competitiveness by expanding its foreign currency repurchase agreement (RP) counterparties, diversifying its investment methods including foreign currency bond management, and opening more foreign currency procurement channels.
To this end, it has established a foreign currency business department and hired additional foreign exchange experts.
KSFC is strengthening its domestic and international sales infrastructures to secure future growth engines.
The company opened its Central Region Center in Gwanggyo, Suwon, in August and is currently pursuing the conversion of its existing Hong Kong office into a Hong Kong corporation, aiming to provide practical support for Korean securities firms’ overseas operations.
“KSFC is planning to strengthen our financial support for chipmakers, artificial intelligence companies and various listed and IPO companies based in the region through the Central Region Center,” President Kim said.
“Overseas, we will actively support the overseas operations of Korean securities firms through our Hong Kong corporation and ensure that their roles expand in rapidly changing global financial environments.”
KSFC will proactively pursue profitability enhancement and shareholder-friendly policies as well.
The company recorded its best performance since its founding last year and is continuing its profit growth this year.
Its equity capital is also expected to reach 4 trillion won for the first time this year.
KSFC has diversified its revenue base through continuous business expansion and new business development.
This has led to significant recent profitability improvements, driven by proactive expansion of operations, stable profitability management, and rigorous risk management efforts.
The company also achieved its best performance since its founding in 2024 and it is continuing its solid earnings growth this year.
Building on this profitability expansion, and as a result of its capital expansion efforts over the past several years, KSFC is expected to rack up 4 trillion won in equity capital* for the first time in 2025.
Based on this capital expansion, KSFC’s financial soundness including its BIS ratio, has also improved, laying the groundwork for expanding its ability to provide liquidity to the capital market in the future.
“In line with the Korean government’s policy of revitalizing the capital market and expanding the supply of venture capital, KSFC will dial up its support for the Korean financial investment industry and build a virtuous cycle that solidifies KSFC’s profit base,” President Kim added.
“By embracing the trend of strengthening shareholder rights, we will also expand shareholder-friendly policies such as introducing an interim dividend in 2026 and maintaining a stable dividend payout ratio.”
_한국증권금융 70주년.jpg)
