Kiwoom Securities' Next Act: From Broker to Investment Partner
"We plan to launch an AI service next year that integrates investment information, financial products, and general counseling." That's the direction from CEO Um Joo-sung: move beyond pure brokerage and become a true investment partner that helps customer assets grow every day.
In a year where Korea's market momentum is symbolized by "Sacheonpi," Kiwoom has reset its structure for the post-brokerage era. IB and S&T have grown, and the firm is nearing approval as an ultra-large investment bank. The strategy is clear and execution-focused.
The 2025 Goal: ROE 15% through a stronger profit mix
Next year's headline target: 15% ROE. Equity is heavier, so Kiwoom will expand and diversify earnings instead of leaning on trading volumes. The plan is to shift from transaction fees to asset management fees, anticipating an environment where brokerage fees could be reduced or even free. For context on zero-commission dynamics in global markets, see this explainer.
AI as the customer interface
AI-based WM is the front door. KiuMe launched this year; KeiMe-covering product characteristics and investment information-gets stronger with an update this year. By the end of next year, Kiwoom plans a unified "concierge" experience so customers can ask one prompt and get answers across investment info, product selection, and business counseling.
The AIX team will expand and support both customer-facing features and internal workflows. The direction: fewer disconnected tools, more end-to-end decisions in one place.
Winning overseas retail by service quality, not fees
Competition for "Seohak ants" is intense, but Kiwoom isn't anchoring on fees. The edge is convenience across the full journey-currency exchange, tax calculation, and trading-so customers feel the process is clean from start to finish.
Coming soon: "Collecting Dollars," "Real-time Earnings Call" for fast reads on foreign company results, and "News that Everyone Pays Attention To" powered by AI curation. The U.S. subsidiary aims to finish setup this year; once live, it should improve stability in U.S. stock execution for customers.
Productive finance: fund the middle stage
Productive finance is the core mission: find companies that lift the real economy and back them at the right moments. Kiwoom will focus on the "middle stage" between early-stage and pre-IPO-often the hardest funding gap. Select the right unlisted firms at this step and you compound both national and shareholder outcomes.
Issuing bills: more fuel for the growth engine
With authorization to issue bills pending final approval, Kiwoom will channel funds through the Corporate Growth Engine team into venture capital. At the group level, Kiwoom Investment (VC) and Kiwoom Private Equity (PEF) round out solutions across the corporate finance cycle. Issued bills also act as an on-ramp to broaden the customer base for other financial products.
Shareholder value: next three-year plan
The current three-year shareholder return plan concludes this year. A new three-year plan will be announced at next year's regular shareholders' meeting. Communication with shareholders is central, and management is gathering input before finalizing the policy.
Operator mindset: moves executives can use
- Rebuild the P&L mix early. Shift from transactional to recurring fees to steady ROE when volumes swing.
- Unify AI touchpoints. One prompt, all answers-reduces friction and lifts adoption.
- Compete on experience. Price cuts are easy to copy; complete journeys (FX, tax, execution, insights) are harder to replicate.
- Target the funding gap. Middle-stage capital can offer strong unit economics and pipeline for IB/PE.
- Stand up a tech-capable ops team (like AIX) that improves both client features and internal productivity.
- If your org needs AI fluency fast, review practical tools and training for finance teams here: AI tools for finance and courses by job.
Quick context
Kiwoom has delivered operating profit in the "1 trillion club" for two consecutive years under Um Joo-sung. The firm is preparing for ultra-large IB status, while the domestic market backdrop remains strong. "Sacheonpi" refers to the ambition around the KOSPI 4,000 level-a reminder that tailwinds help, but the model still has to evolve.
CEO profile: Um Joo-sung
- Born 1968, Seoul
- B.S. in Applied Statistics
- M.A. in International Policy, KDI School
- Daewoo Securities (1993)
- Kiwoom Securities PI Team Leader (2007)
- Executive Director, Investment Management HQ (2013; 2020)
- Executive Director, Strategic Planning HQ (2022)
- Executive Vice President, Strategic Planning HQ (2023)
- Representative Director, 2024
The bottom line
Kiwoom's next phase is a shift from selling trades to growing assets-anchored by AI, fee mix changes, and capital for the middle stage. If you lead a financial business, the playbook is straightforward: make the end-to-end experience effortless, harden your earnings mix, and wire AI into both the client layer and the back office.
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