Korea Investment and Securities Co. has been leading the investment banking and asset management sectors of the securities industry ever since the company restructured its earning structure focused on the two operational sectors.
This year, the company successfully managed the IPOs of Samsung SDS, NS Homeshopping, Gastech Korea, Favor Nine, and Coo Coo Electronics, among the large ones. The company had a very successful deal as a representative manager for Samsung SDS IPO, which attracted some 15.552 trillion won in subscription deposits. In addition the company also lead managed the capital increase for such companies as BS Financial Holdings(514.6 billion won), LS Cable and System(172.5 billion won), the bond issues and M&As in the area of the investment banking.
The company also has been doing very well turning large profits in the area of asset management of its operation, starting with the asset-growth type saving funds and the new retirement savings account named as “I’m You for Life-long Retirement Fund Savings that the company launched following the revision of the income tax law has attracted so many account holders that made the company the leader in the area. The company’s remaining balance of the retirement savings accounts is the largest in the industry as of Oct. 31 with 19 percent.
Thanks to the superb performance in those two sectors, the company has been leading the industry in the area of profit for three years in a row from 2011 to 2013.
This year, too, the company posted 102.9 billion won in the first half profit with accumulated sales up to the Q3 coming to 2.533 trillion won with profit amounting to 181.6 billion won, tops in the industry.
The company’s stable operation would be a great help to its mother company, Korea Financial Holdings with its share price likely to jump. An analyst with HMC Investment and Securities said the company’s customers’ assets have been rising with the sales of the mid-level risk and mid-level profit commodities also expanding joining with other sectors of the company’s operation in profit earnings, except trust account fees. The synergy between asset management and asset operation has been rising, also, the analyst said.
The company has also been turning to overseas in pursuit of profit with its office in Jakarta having opened in Dec. 2, which is the seventh overseas office following the Hong Kong office set up in 1974, the London office in 1994, the New York office in 2001, the Singapore office in 2008, The Hanoi office in 2010 and the Beijing office in 2010.
The company did not jump into these overseas offices to make profit as soon as they are opened. But it has been deliberate and moved slowly but surely with thorough analyses of the markets they are to operate. The company’s Vietnam operation is the representative of its overseas operation style.
The company took over KIS Vietnam, a local joint-venture securities firm in 2010 to make the firm a center of the company’s operation in the S.E. Asian country. The company began to show profits in only two years since the takeover. What the company did to the Vietnamese securities firm was to introduce the HTS(home trading system) an online transaction service system to the operation of the Vietnamese affiliate. The move boosted the Vietnamese affiliate to jump to the 20th in the order of operation from the 60th in the rankings of the securities industry in Vietnam.
In addition, the Beijing Jinyu Investment Consultation Co, which opened in November, 2010 has been acting as a window for the company’s operation in China in such areas as the IPO for Chinese firms, the investment banking, and as the bases for qualified domestic institutional investors, and the qualified foreign investors..
