Toss Securities to throw U.S. bonds into mix ahead of IPO

Toss Securities will allow users to trade U.S. corporate bonds and foreign derivatives this year ahead of its parent company's expected initial public offering.

Toss Securities CEO Kim Seung-yeon speaks during a press conference held in Conrad Seoul in Yeouido, western Seoul on Thursday. [TOSS SECURITIES]

Toss Securities will enable the trading of U.S. equity and foreign derivative products as part of the company's plans to diversify its services ahead of the planned listing of its parent company.

The brokerage firm, operated by Viva Republica and established in 2021, said on Thursday that it will launch U.S. corporate bond and foreign derivative trading starting in the second half of the year. A PC-based web trading system, which will be linked to the existing mobile trading system, will also become available next month.

“Toss Securities will provide services beyond those centered on domestic and foreign stocks,” said company CEO Kim Seung-yeon at a press conference held at the Conrad Seoul in Yeouido, western Seoul on Thursday.

Kim vowed to make Toss the No. 1 trading platform for retail investors, without specifying by when. It ranked fourth for foreign stock trading in terms of commission profit.

Investors need at least 20 million won ($15,200) to be able to invest in blue chip corporate bonds under the current system, according to Toss Securities, but that threshold will be cut sharply on its app to 1 million won to facilitate trading for retail investors.

"We expect this year’s first quarter net profit to double the annual net profit raised last year,” said Kim.

Toss Securities reported its first annual net profit last year, which stood at 1.53 billion won, having logged net losses of 78.3 billion won in 2021 and 32.5 billion won in 2022.

The company’s operating profit remains in the red at 900 million won.

Toss Securities pledged to strengthen the control system and invest more heavily in computerized error prevention after more than 30 glitches forced the company to shell out 108 million won in compensation.

While Viva Republica has not specified the date, it is expected to go public next year, making 2024 an important year to boost the corporate size. Viva Republica traded at 51,000 won on Thursday on the Seoul Exchange, a trading platform for non-listed stocks, down from its 2021 peak of above 160,000 won.

BY JIN MIN-JI [jin.minji@joongang.co.kr]