Kiwoom Securities gets green light to offer broader currency exchange services

A man passes by Kiwoom Securities headquarters in Seoul in this May 24, 2023 photo. Newsis

Firm accelerates various new businesses following stock manipulation scandal

By Jun Ji-hye

Kiwoom Securities has acquired permission from the Ministry of Economy and Finance to provide general money exchange service to customers, the brokerage said, Friday.

Previously, the brokerage was authorized to provide currency exchange services only for securities investment purposes. However, a new permission, granted on July 22, now allows both individual and corporate clients to use its mobile trading system for general currency exchange needs, including travel, studying abroad and international trade.

The ministry reformed the country’s foreign exchange system in February last year, allowing nine comprehensive financial investment companies to provide general currency exchange services to both individuals and businesses.

Kiwoom Securities became the first entity among those nine companies to obtain permission for such services.

“Now, customers do not need to visit banks as they can exchange money simply through our mobile trading system,” a Kiwoom official said.

The Seoul-based company is working to introduce the one-stop service that will enable all types of exchange for securities investments, travel or study expenses, among others. This system will enable customers to exchange their stock trading profits directly.

The company is also working to provide corporate clients with a wider range of options in foreign currency management for their exports or imports.

“The general money exchange service is expected to enhance customer convenience and increase the potential for discovering new business models,” the official said.

The brokerage is accelerating efforts to explore new business opportunities to rejuvenate its image after being embroiled in a controversy over suspected involvement in two major stock manipulation incidents last year. At that time, the firm faced scrutiny regarding its risk management practices and consumer protection capabilities.

Kim Ik-rae, the former chairman of Daou Kiwoom Group, the parent company of Kiwoom Securities, was investigated by prosecutors in connection with one of these stock manipulation schemes. However, he was not indicted as the prosecution decided not to press charges in May of this year.

Following this decision, the securities company is resuming work to apply for designation as a large-scale investment bank (IB), which was temporarily suspended due to the controversy over the stock manipulation cases.

The company plans to apply within the year.

The firm is also focusing on expanding its businesses into individual retirement pension (IRP) services, exploring overseas markets and developing asset management services using artificial intelligence.