This article appeared on the capital markets compass "Signal" at 4:56 p.m. on July 2, 2026.
With the corporate bond market shrinking in the first half of this year amid the fallout from high interest rates, KB Securities took first place in both corporate bond arranging and underwriting, reaffirming its standing as a powerhouse in the debt capital market (DCM). However, as the corporate bond market slumped, the earnings of top-ranked securities firms declined from last year, leaving them with a report card that offered little to smile about despite maintaining their rankings.
According to the Korea Financial Investment Association on Wednesday, corporate bond issuance in the first half of this year totaled 67.2659 trillion won, down 10.26% from 74.9574 trillion won in the same period last year. Redemptions, meanwhile, rose to 63.6323 trillion won from 55.2251 trillion won. The shift is attributed to companies choosing cash redemption over new issuance as market interest rates surged following the war between the United States and Iran.
Even amid the market slump, KB Securities led both the arranging and underwriting divisions. In arranging, it handled a total of 149 corporate bond issuances, taking an overwhelming first place. It maintained a solo lead, opening a 54-deal gap over second-place NH Investment & Securities (95 deals) and a 62-deal gap over third-place Korea Investment & Securities (87 deals). Kiwoom Securities (63 deals) ranked fourth and Shinhan Securities (60 deals) fifth, followed by SK Securities (45 deals), Samsung Securities (26 deals), Hana Securities (25 deals), Daishin Securities (23 deals), and Kyobo Securities (14 deals).
KB Securities also stood atop the underwriting division. KB Securities recorded first place by underwriting 5.8242 trillion won. NH Investment & Securities came in second with 5.293 trillion won, and Korea Investment & Securities took third with 4.6515 trillion won, forming the same "top three" structure as in the arranging division. In the competition for fourth place, however, the rankings diverged. SK Securities edged out Kiwoom Securities (3.1084 trillion won) by a narrow margin with 3.266 trillion won to take fourth. Shinhan Securities recorded sixth place with 3.0638 trillion won, followed by Hana Securities (1.6345 trillion won), Samsung Securities (1.5955 trillion won), and Daishin Securities (1.352 trillion won).
Securities firms whose arranging and underwriting rankings diverged also drew attention. Kiwoom Securities ranked fourth in arranging but slipped to fifth in underwriting, pushed down by SK Securities. Conversely, SK Securities stayed at sixth in arranging but jumped to fourth in underwriting, raising its profile. Shinhan Securities also maintained its upper-tier standing with fifth in arranging and sixth in underwriting, but fell short of breaking into the "top five."
Unlike the rankings, however, most earnings retreated. KB Securities' number of arranging deals fell by 58 from the same period last year, and its underwriting amount also declined 34.81%. NH Investment & Securities saw its arranging deals fall by 48 and its underwriting amount shrink 27.56%. Korea Investment & Securities likewise saw arranging deals fall by 40 and its underwriting amount decline 23.62%. In other words, they maintained their rankings amid the market contraction, but their absolute earnings shrank significantly.
The ranking competition is expected to remain difficult in the second half as well. With the possibility of a base rate hike by the Bank of Korea next month being discussed, the dominant view is that issuance conditions could deteriorate further. In addition, as investor sentiment for lower-grade corporate bonds weakens in the wake of the restructuring of JR Global REIT and affiliates of the JoongAng Group, and as the money-move phenomenon driven by the strength of the stock market continues, the view that the DCM market's pace of recovery will be limited is gaining weight.
Baek Yoon-min, an analyst at Kyobo Securities, noted, "Market interest rates showed some of the early-month surge being reversed, but they are still reflecting the possibility of two to three or more base rate hikes within the year." He added, "Although the geopolitical risk in the Middle East has been somewhat eased with the United States and Iran agreeing to an end to the war, favorable factors for the bond market—such as fundamentals, supply and demand, and exchange rates—still remain largely out of sight."
