From Samsung to Toss: Why Korean finance is betting on Japan

South Korean financial firms are accelerating their push into Japan, with Mirae Asset, Hanwha and Toss moving to acquire local brokerages within weeks, betting on a surge in retail investing and sweeping capital market reforms.

The three acquisition plans announced in October signal growing interest in Japan's financial market as households shift savings into investments and the government pushes to revitalize the country's capital markets. The deals also highlight different strategies among Korean firms seeking a foothold in Asia's major investment hub.

In the past week alone, two South Korean financial firms announced plans to acquire Japanese brokerages, bringing the total to three in October.

On Friday, Viva Republica, the operator of Toss, unveiled plans to acquire mobile-focused Cheer Securities from Tokai Tokyo Financial Group for an estimated 4 billion yen ($25.3 million).

"We saw value in Cheer Securities' efforts to make investing accessible to beginners, which aligns with our own business direction," a Toss official said, highlighting the company's ambition to tap Japan's growing pool of first-time investors.

A day earlier, Mirae Asset Securities announced a deal to acquire Sanko Securities from Okasan Securities Group for about 47.6 billion won ($35.4 million), with plans to expand into retail brokerage and asset management.

Earlier in October, Hanwha Investment & Securities signed a deal to acquire the securities business of Japan's GI Capital Management, targeting institutional investors.

The acquisitions offer a quicker route into Japan's regulated securities market as smaller brokerages face mounting competition from major online rivals. All three deals remain subject to regulatory approvals and closing conditions.

Japan's retail investment market is expanding rapidly. Tax-exempt investment accounts in Japan reached 30.48 million at the end of June, up 8.1 percent from December, according to the Japanese Financial Services Agency. Investors in their 20s and 30s held nearly 30 percent of the accounts.

Lee Hyo-seop, a senior research fellow at the Korea Capital Market Institute, said Japanese households are increasingly moving their savings from bank deposits into stocks and investment funds, creating new opportunities for financial firms.

"There are more individual customers, more corporate customers and more financial institution clients," Lee said. "Companies see opportunities in all three."

While Mirae Asset, Hanwha and Toss are pursuing acquisitions, Samsung is taking a more measured approach, strengthening its research and market intelligence capabilities in Japan.

Samsung's financial affiliates are preparing to consolidate their Tokyo operations into a shared office space. Samsung Life Insurance and Samsung Securities, which already operate in the city, will be joined by Samsung Fire & Marine Insurance and Samsung Asset Management, which plan to establish offices next year.

A ceremony marking the planned expansion is scheduled for Nov. 9.

The affiliates will operate independently, maintaining their focus on market research rather than sales. Samsung Fire, in particular, aims to learn from Japanese insurers' global expansion strategies to prepare for similar demographic and market challenges at home, a company official said.

Tokio Marine expects overseas operations to generate 67 percent of its profits in fiscal 2026. By comparison, S&P Global Ratings estimates international businesses will contribute 9 to 11 percent of Samsung Fire's annual earnings.

Samsung's renewed focus on Japan extends beyond its financial affiliates, with the group expanding its presence in research and technology. Samsung Global Research announced plans in March to establish a Tokyo office, while Samsung Electronics opened an advanced semiconductor packaging research lab in Yokohama in September, part of a planned 40 billion yen investment through 2028.

Japan's appeal extends beyond finance, as the country's capital market reforms begin to show tangible results. Since 2023, the Tokyo Stock Exchange has pressed listed companies to improve capital efficiency, boost shareholder returns and strengthen corporate governance.

The median price-to-book ratio of Japanese nonfinancial companies rose from 1.1 to 1.3 over three years, according to the Organization for Economic Cooperation and Development. By contrast, the ratio declined in South Korea following the launch of its own value-up program in 2024, despite a sharp stock market rally.

M&A transactions involving Japanese companies rose 5 percent to a record 3,883 in the first nine months of 2026, according to Recof Data, amid corporate restructuring and growing foreign investor interest.

"Corporate earnings have been strong recently, and liquidity remains abundant in Japan," Lee said. "Japan remains a key hub for institutional investors in Asia, with global investors allocating more of their portfolios to the region, particularly Japan and Taiwan, as they diversify beyond the US."

Korean companies are among those pursuing opportunities. Samyang Group acquired Japanese flavor-maker Soda Aromatic for about 41 billion yen from Toray and Mitsui & Co. in July, in a deal Mitsui described as part of its business portfolio restructuring. South Korea's direct investment in Japan hit a record $1.75 billion in 2025, nearly tripling from a year earlier, according to the Japan External Trade Organization.

Opportunities are also emerging beyond capital markets, as Japan steps up efforts to attract foreign investment in advanced industries.

"Japan has been making enormous investments in regional hubs for semiconductors, AI and robotics, while actively seeking foreign capital to develop these industries," Lee said. "There are growing opportunities across individual, corporate and institutional markets."