/ Kiwoom Securities
As the owner risk of Kiwoom Securities linked to the share price of Societe General (SG) falls, its position as the undisputed No. 1 position in stock load trading is shaking. Institutions have been selling net shares of Kiwoom Securities for 10 days, and individual investors are also boycotting.
According to the Korea Exchange on the 7th, the stock price of Kiwoom Securities closed at 89,000 won on the 4th, down 1.22% (1,100 won) from the previous trading day. Kiwoom Securities’ stock price has been on a downward trend for 11 consecutive trading days from the 19th to the 4th. The closing amount on the 24th of last month, when the decline in stock prices from SG became apparent, was 104,700 won, and the peak in the last month was 109,400 (14th of last month). Calculated based on this, the share price of Kiwoom Securities on the 4th fell almost 20% from its recent peak. Market capitalization has evaporated by about 400 billion won from 2.7451 trillion won on the 21st of last month to 2.3335 trillion won on the 4th of this month. From the 19th to the 4th of this month, institutional investors such as pension funds, financial investment, insurance, and investment trusts sold 63.97967 billion.
According to last year’s business report submitted by Kiwoom Securities to the Financial Supervisory Service’s Electronic Disclosure System (DART) last year, the share of the domestic stock market (cumulative) in 2022 is 19.6%. It retained its No. 1 position in the industry with a figure that is twice that of the five major securities firms, including Mirae Asset Securities, NH Investment & Securities, Korea Investment & Securities, Samsung Securities, and KB Securities.
However, individual investors are showing signs of a boycott as suspicion of manipulation of SG’s stock price by Daukium Group Chairman Kim Ik-rae deepens. As the situation grew, Chairman Kim resigned as chairman on the 4th and announced that he would return about 60.5 billion gained from the stock sale to society, but it is not clear whether it will be possible to turn public opinion .
Ra Deok-yeon, CEO of an investment advisory firm, who is highlighted as a key figure in the SG stock manipulation case, identified Chairman Kim as the culprit behind the incident. Chairman Kim said at the conference that day, “I explained the malicious claim about my stock sale with objective data, but the debate continues.” I decided to do that,” he explained. Although Kiwoom Securities maintains an attitude that Chairman Kim’s involvement is baseless, difficulties are expected until Chairman Kim’s owner risk is resolved.
In addition, negative news overlapped on the 3rd as the financial authorities launched an investigation into CFDs on Kiwoom Securities. Currently, the Financial Supervisory Service’s Financial Investments Inspection Office is investigating whether Kiwoom Securities is complying with the regulations relating to CFD services and using inside information about employees. On the other hand, on the 20th of last month, two trading days before the stock price crash, Chairman Kim sold 1.4 million shares of Daou Data that he owned through out-of-hours trading and exchanged 60.5 billion won.
A securities industry official predicted, “The market position of Kiwoom Securities is solid, and the positive view of securities companies on stock price prospects will not change immediately, but it will not be easy for the lack of trust that has arisen in the market on after this SG event. subsiding.”
