Toss Securities Chief Financial Officer Kim Kyung-soo speaks during an interview with The Korea Times at the headquarters of the company in southern Seoul, June 12. Courtesy of Toss Securities

One of the key factors contributing to Toss Securities' achievement of an annual net profit in fewer than three years since its launch in early 2021 is Toss' super-app strategy, along with the active investor community within the online brokerage app, the firm's head of finance said.

During a one-on-one interview with The Korea Times earlier this month, Kim Kyung-soo, the chief financial officer (CFO) of Toss Securities, said that what primarily sets the firm apart from other fintech-based securities firms — which haven't yet made a profit turnaround — is Toss' unique super-app characteristics.

While other internet-only fintech firms require customers to install separate mobile applications for each banking or securities service, Toss customers can easily access brokerage functions provided by Toss Securities under the same Toss app. This convenience played a significant role in the firm's initial growth.

"There are currently about 6 million investment accounts opened at Toss Securities, with the number of monthly active users standing at around 3.2 million. Many of these customers were already users of Toss, Korea's financial super app, which now has nearly 20 million clients," Kim said during the interview.

The head of finance also indicated that more than one-third of the 3.2 million monthly active customers, or about 1.3 million, regularly participate in the mobile brokerage firm's investor community, creating the firm's uniquely vibrant community.

"In terms of online community activity level and the number of community participants, Toss Securities ranks top among all securities firms in Korea. Also, the proportion of customers actively engaged in the community is one of the highest among Korean securities firms. This highly active user interaction has, in turn, generated increased stock trading, yielding a solid rise in the firm's commission profit," Kim explained.

To sustain user community engagement, the online brokerage firm has continued to innovate its various customer services, ranging from providing AI-powered news delivery tailored for U.S. stock investors and real-time news translation services to in-depth analysis reports aimed at investors seeking deeper insights.

Besides the growth in the trading commission income, another essential part of Toss Securities' efforts to enhance profitability came from its emphasis on efficient cost management.

"We have focused extensively on optimizing both direct and indirect expenses to maintain utmost efficiency and flexibility. By managing fixed costs efficiently while minimizing variable costs associated with increasing transaction volumes and commissions, the firm strives to maximize profitability through closely examining operating leverage," the head of finance said.

Toss Securities Chief Financial Officer Kim Kyung-soo poses at the headquarters of the company in southern Seoul, June 12. Courtesy of Toss Securities

Business acumen learned from FX dealing, semiconductor sector

Besides, Kim underscored that staying nimble to ever-changing external factors was paramount in achieving annual profitability sooner than expected.

"As it's crucial to respond nimbly to unexpected changes, I strive to ensure financial flexibility. This flexibility has enabled the company to adaptively manage costs and maintain capital liquidity when unforeseen events occur," the CFO pointed out.

He said he learned these necessary skill sets from his previous work experiences.

He started his career at the Korea Development Bank (KDB), a state-run policy bank, where he assumed a variety of roles, including foreign exchange (FX) dealing and risk management for derivatives products. He noted his experience as an FX dealer has helped him effectively manage the foreign currency risks to which Toss Securities is exposed, as well as implement agile business strategies.

"Exchange rates are influenced by a variety of factors, including interest rates, policy directions, and cross-border capital flows. While having a macro view of these factors' future moves is significant, it is equally important to respond nimbly and flexibly to market changes, often letting go of previously held positions," he said.

After spending several years at the KDB, he left the policy bank to pursue an MBA at the University of California, Berkeley. He then spent another decade at a semiconductor company located in Silicon Valley, California, where he gained insights into achieving optimal cost management in a highly cyclical sector.

"Since the semiconductor industry is cyclical, the company must constantly be prepared not only for labor costs but also for other expenses. I learned how to continually maintain the caliber of employees, while sustaining a lean organization," the CFO recounted, adding continuous cost management and efficient resource allocation are essential.

Lastly, when asked for advice for the aspiring young generation, he recommended focusing on seizing growth in present opportunities rather than planning too far ahead.

"If I had tried to meticulously calculate everything in the long-term, I don't believe I could have taken steps forward into uncertainty," he highlighted. "There are continuous opportunities for learning and growth. I felt a sense of unease when I realized I was merely consuming what I had already learned without actively contributing."

"When these realizations accumulated over time, I sought paths that offered greater learning opportunities. Pursuing growth through these opportunities has always been highly appealing to me," he said.