Foreign Brokerages Axe Jobs Despite Surging Earnings

By Jhoo Dong-chan

Foreign brokerages are downsizing their workforces despite surging earnings.

According to Financial Supervisory Service data released by , Monday, the nation's 22 foreign brokerages reported a combined net loss of 337.

1 billion won ($295.9 million) in 2013, but managed to turn a profit the following year and have since enjoyed surging earnings every year

They are also expected to continue their profit streak this year since they posted a combined net profit of 349.

6 billion won between January and August.

Despite their handsome earnings, the 22 foreign brokerages downsized their workforces in the period.

The number of their employees was 3,879 in total as of end-2013.

They have since slashed 881 jobs to 2,998 as of August 2018.

Of the 881, women accounted for 501 while men were 380.

'Foreign brokerages have made a lot of money in the domestic market, but reduced their workforces.

It's a problem,' Rep. Kim said.

'They should contribute their earnings to the nation's job market. They should hire more people.

'

A market observer said foreign brokerages' performance-centered governance systems could be the reason behind the decline in the number of employees.

'Performance is everything,' said a former Daishin Securities analyst who requested not to be named.

'There was no such thing like you could have a bad day. If you fall short of the firm's expectation, you'd immediately lose your job there.

They know there are a number of analysts who are willing to replace job openings there.'

Foreign brokerages rebutted it, claiming the downsizing in their workforces is attributed to the emergence of home and mobile trading systems.

'It's just like banks. I understand the nation's commercial lenders are also reducing their workforces while shutting down...