Shares of major South Korean securities firms have dropped sharply from this year's highs as declining trading value raises expectations of weaker third-quarter earnings. Mirae Asset Securities has fallen 62% from its May 6 peak, while Kiwoom Securities, Samsung Securities, Korea Investment Holdings and NH Investment & Securities have also recorded substantial declines. Average daily trading value, including ETFs, fell 32% last month to 67.2 trillion won from 99.5 trillion won previously, threatening brokerage commissions and trading income. Analysts project that combined third-quarter net profit attributable to controlling shareholders at five major firms will reach 1.5 trillion won, 29% below market expectations. Target prices have been repeatedly cut, while higher oil prices, rising interest rates and weakness in AI, semiconductor and broader equity shares add pressure. Analysts nevertheless expect full-year earnings to remain above historical averages because trading value is still about twice last year's average and wealth management, investment banking, trading income and client deposits continue to expand. The sector's medium- to long-term re-rating is expected to depend on retail investor turnover, dividends and the success of wealth-management and digital-asset businesses, including STOs (security token offerings).