South Korea’s 10 largest securities firms generated a combined second-quarter net profit of ₩5.9362 trillion, or about $4.31 billion, up 37% from the previous quarter and 141% from a year earlier. The record performance was supported by stronger brokerage commissions as trading activity expanded and by improved valuation and disposal gains in trading operations. Shares, however, have weakened as the stock market moved sideways, trading volumes contracted and investors questioned whether the government’s Value-Up Policy, a corporate value enhancement initiative, still offered further catalysts. The Korea Exchange securities industry index fell from a yearly high of 9,804.97 on May 9 to 6,400–7,400 in June, 4,700–6,400 in July and 5,000–5,500 in August. Three of five large-cap brokerage stocks on the KOSPI declined between July 31 and August 28, led by an 11.32% drop in Samsung Securities to ₩88,500 from ₩99,800. NH Investment & Securities and Kiwoom Securities each fell more than 5%, while Mirae Asset Securities and Daishin Securities gained 4.63% and 4.26%, respectively. Analysts are increasingly focused on earnings durability as higher interest rates raise funding costs, margin-loan growth slows and investment-banking fee income weakens. The KOSPI fell 25.5% from its all-time high of 9,114.55 on June 22 to 6,788.88 on August 28. Seol Yong-jin, an analyst at iM Securities, said brokerages risk a prolonged undervaluation similar to that experienced by regional banks such as BNK and iM Financial, which traded at discounts despite dividend yields of 9–10%. He said brokerages need more durable revenue sources and a balanced capital policy combining growth with shareholder returns to create a recovery catalyst.