Samsung Securities to Cut Jobs, Branches Amid Declining Earnings

Samsung Securities Co. (016360), South Korea’s largest brokerage by market value, plans to cut employees and branches to lower costs as profit deteriorates.

The company will accept voluntary early retirement from employees who have worked more than three years and will reduce executives’ expenses by 35 percent, Chief Executive Officer Kim Seok told staff members today, according to an e-mailed statement from Samsung.

South Korean securities firms posted combined losses of 109.8 billion won ($106 million) for the nine months through December, the first deficit since 2002, the Financial Supervisory Service said on Feb. 20. The losses compared with profit of 787.7 billion profit a year earlier, FSS data show.

Shares of Samsung Securities fell 1.5 percent as of 10:13 a.m. Seoul time. The stock lost 5.7 percent this year, compared with the benchmark Kospi index’s 1 percent drop.

The firm, 20 percent owned by affiliates of Samsung Group, had 100 domestic branches as of December and 2,554 full-time workers, according to a regulatory filing.

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

To contact the editors responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net Darren Boey, Stuart Biggs

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