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| Naver headquarters / Courtesy of Naver |
By Lee Min-hyung
Naver is posing a growing threat to securities firms, as the nation's largest online portal company considers linking Mirae Asset Securities' web-based stock trading service to its dominant internet platform.
Even if the potential partnership is still in its infancy, most brokerage houses are widely forecast to be affected by Naver's ever-growing platform influence, according to industry sources. The service will enable investors to trade stocks easily on the web.
The web trading system (WTS) is far from a mainstream stock trading tool here amid the rise of the mobile trading system (MTS). But industry officials said it remains to be seen whether the WTS will regain its luster, given Naver's successful inroads into the financial sector.
Nothing specific has been confirmed as to when the service will be available to investors, but both sides are in talks to do. For now, Naver does not link investors to a trading platform of securities firms, so most retail investors trade their stocks via the MTS of each securities firm.
"Naver and Mirae Asset Securities are in a very infant stage of talks over the service, so it is too early to provide details on its possible impact on the market," an official at Mirae Asset Securities said.
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| Seen above is a screenshot of Naver's website. The internet portal operator provides stock information, but does not yet support direct stock trading. Screenshot from Naver |
But Naver's rapid expansion into the financial sector comes as an alarm bell to market players. Naver Financial operates diverse successful platforms ― such as Naver Pay and Naver Real Estate. The portal giant is now operating securities-related services which include information on stock prices and corporate analysis, but investors cannot gain access to direct stock trading via the Naver platform for the time being.
Officials from the industry said securities firms with MTS lacking competitiveness will consider joining the Naver ecosystem once the service becomes available.
"The point will be on how competitive a brokerage house's MTS is," an official from a major securities firm said. "Even if it is hard to predict how threatening the service will be to existing market players, most brokerage houses will have to pay keen attention, as they still rely heavily on commission revenues from investors' stock trading."
If the service succeeds in attracting investors, most brokerage houses will have to join the platform, so they do not lose their potential customers to rivals, according to the official.
"Chances are Naver will charge a commission to securities firms for the service in the end," the official said.
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