The securities industry, which recorded record-breaking performance in the first half of this year, has launched efforts to establish a joint social contribution plan. Led by the Korea Financial Investment Association, securities firms have begun discussing industry-wide measures for social contribution, including strengthening investor protection. This move comes amid growing demands that the securities industry fulfill its corresponding social role as profits surge due to a booming stock market and the capital market's status rises.
According to the financial investment industry on the 18th, the Korea Financial Investment Association and securities firms are currently discussing joint social contribution measures for the industry. While specific details such as the scale of support, target groups, and funding allocation remain undecided, it is understood that various options including strengthening financial investment education are being reviewed. A senior executive at a securities firm stated, "Discussions are underway on multiple measures including investor education and fund creation, centered around the Korea Financial Investment Association," adding, "As the importance of the capital market grows and the status of securities firms responsible for it changes, we share the view that joint social contribution by the industry is necessary from a social responsibility perspective."
Financial authorities also express agreement on the need to expand the securities industry's social role. A financial authority official remarked, "While securities firms have achieved record-breaking profits, many retail investors have incurred losses, so demands for social contribution will likely intensify," and added, "Securities firms must take action in areas such as strengthening education for investor protection and investing in related infrastructure."
The banking sector's expansion of mutual prosperity and inclusive finance through interest refunds, interest rate cuts, and debt restructuring also serves as a background influencing the securities industry's social contribution discussions. However, since securities firms have different revenue structures from banks, voices are being raised calling for so-called "capital market-type mutual prosperity finance" that leverages the functions and expertise of the capital market rather than simple donations or cash support.
Inside and outside the industry, possible measures include financial investment education and investor protection, support for asset formation among youth and vulnerable groups, funding supply to small and medium-sized enterprises and venture companies, and creation of public interest and mutual prosperity funds. The specific methods are expected to be determined through discussions between the Korea Financial Investment Association and securities firms.
The background of social contribution discussions lies in the steep performance growth of the securities industry. The consolidated net profit for the top 10 securities firms by capital base totaled 10.27 trillion won in the first half of this year, surpassing the 10th trillion won mark for the first time. This represents more than double the amount from the same period last year and also exceeded last year's full-year net profit of 9 trillion won within just six months.
There are hurdles to overcome in concretizing joint measures. The securities industry experiences significant performance volatility depending on stock market conditions, and there are differences in capital strength and profit scale between large firms and small-to-medium-sized firms. Issues such as establishing the scale of social contribution, allocation criteria for each securities firm, and creating a sustainable structure that allows operations to continue even when market conditions deteriorate are expected to become key points of future discussions.
Park Hong-bae, a Democratic Party of Korea member of the National Assembly's Political Affairs Committee, stated, "As securities firms have achieved record-high levels of performance, they must also expand their social responsibility and role accordingly," and added, "The industry must jointly develop sustainable social contribution measures that leverage the characteristics and expertise of the securities sector, including financial investment education, investor protection, and support for asset formation among youth and vulnerable groups."
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