Korean financial firms are buying into Japan's brokerage market

Japan's stock market surge and the surge in retail investing are drawing Korean financial institutions to seek opportunities for overseas expansion, as smaller brokerages face mounting pressure, according to industry officials. Viva Republica, the operator of the Korean fintech platform Toss, announced plans to acquire Cheer Securities, its Singapore-based subsidiary, through a transaction valued at 4 billion yen ($25.35 million).

This would be Toss's first overseas acquisition. Cheer Securities, founded in 2019 by Tokai Tokyo Financial Holdings, specializes in mobile trading, enabling customers to invest in stocks and exchange-traded funds through increments of 100 yen using its app. It also manages security token offerings. Additionally, Mirae Asset Securities signed an agreement on Thursday to acquire Sanko Securities, a unit of Okasan Securities Group, via its U.S. subsidiary.

In this deal, Mirae Asset plans to inject 12 billion yen into its U.S. subsidiary, with approximately 5 billion yen allocated towards the acquisition and the remaining funds directed towards expanding its presence in Japan following the transaction's completion.