More securities firms in South Korea are adopting a co-CEO structure, particularly among large brokerages, as their scale and business lines expand. The shift reflects broader diversification into areas such as comprehensive investment services and investment banking, with companies splitting accountability by division.
As of April 30, three firms have adopted co-CEO structures: Mirae Asset Securities, KB Securities and Meritz Securities, according to the financial investment industry.
Mirae Asset Securities has operated under a co-CEO system since 2023, with CEO Kim Miseop overseeing global and IB operations and CEO Heo Seonho leading wealth management and retail. The company has since posted broadly balanced growth across major businesses including WM, global, IB and trading. KB Securities, operating with separate CEOs for IB and WM, has produced results strong enough to enter the annual operating profit “1 trillion won club.” Meritz Securities, after adopting a two-top structure led by Jang Wonjae and Kim Jongmin in 2024, increased its contribution to parent Meritz Financial Group from 19% to 28%.
More recently, NH Investment & Securities has moved to switch to a co-CEO structure, citing a larger organization and a more complex business structure following its entry into the IMA (comprehensive investment account) business. NH Investment & Securities in March became the third brokerage to receive approval for the IMA business. After the approval, it launched its first product and has been expanding its asset management business in earnest. The company said the co-CEO structure will run key business units under a system of accountable management and strengthen its mid- to long-term growth base by linking growth in client assets with investment finance capabilities. “As the scope of business widens and the scale of assets under management grows, the weight and complexity of management decisions also increase,” a company official said, calling the shift “a strategic choice to raise the company’s competitiveness and accountable management system by another level” as capital markets grow.
Industry officials say the spread of co-CEO structures is being driven by the sharp expansion in brokerages’ size and business scope. The securities business has become too complex to manage under a single standard. Investment banking depends on speed in sourcing deals and executing investments, while wealth management focuses on maintaining a client base and managing stable returns.
Under a single-CEO structure, managing businesses with different characteristics can lead to delayed decisions or concentrated risk, the industry says. By contrast, a co-CEO structure separates decision-making authority by division to increase speed, while each CEO bears individual responsibility for the area in charge. Officials say the approach can also improve risk controls and management transparency.
* This article has been translated by AI.
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