Korean small to mid-sized brokerages downsizing amid liquidity strains

Yeoyido Financial District [Provided by Maekung Media Group]

Small and mid-sized securities firms in South Korea in liquidity stress are starting to let go of employees amid widening liquidity strains from securities market slump and profit financing debacle.

According to the investment industry, eBEST Investment & Securities is considering streamlining its workforce in its corporate financing unit.

For now, the plan is yet to be fixed.

“We have reviewed ways to streamline the overstaffed organization for efficiency since June. However, nothing is decided, and layoff is not under review.”

The brokerage has cut 20 percent of monthly wages for executives since September.

Daol Investment & Securities conducted restructuring due to its losses in bond investment.

It has opted not to renew contracts with six employees. CAPE Investment and Securities decided to close its corporate sale and research units, shedding some employees there.

Downsizing may widen unless capital markets recover. .