Controversy over Kiwoom Securities' Overseas Stock Trading Volume
Allegations have surfaced that Kiwoom Securities artificially inflated its trading volume in U.S. short-term bond ETFs. The 'Hero Membership' program incentivizes customers by providing cash rewards for trading above certain amounts, resulting in a sharp rise in Kiwoom’s market share for overseas stocks. While this program has driven considerable growth for the company, it also faces criticism for possibly engineering volume rather than reflecting actual market activity.
Various factors contributed to the increase in Kiwoom Securities' overseas trading, as also highlighted by the company. In February, about 500 million won was used for rewards, which had a direct impact on trading volume growth. This marketing strategy successfully attracted customers but is sometimes viewed primarily as a marketing maneuver rather than a reflection of actual trading activity.
Related News
Kiwoom Securities Suspected of Inflating Trading Volume with US Short-term Bond ETFs - Metro News - Valuable Information for Middle Class and Ordinary CitizensAllegations have emerged that Kiwoom Securities inflated trading volumes by using US short-term bond ETFs, which carry almost no risk of loss. According to the financial investment industry on the 24th, since the end of last month, 'iShares Sho' has been a top traded stock on the 'HeroM' mobile trading system (MTS) of Kiwoom Securities.
Kiwoom Securities, Number 1 in Overseas Stocks, Inflating Trading Volume with Rewards?Kiwoom Securities, Number 1 in Overseas Stocks, Inflating Trading Volume with Rewards? News