Kim Ki-bum, former president of Daewoo Securities Co., has been tentatively named to take over as the president of Hyundai Securities Co. Nine members of the board of directors were also named, including five outside directors at the board’s meeting held on Aug. 24, the company said recently.
The personnel appointments were made with the securities firm having been taken over by Orix Group of Japan recently. The newly appointed directors, including CEO Kim, have to be approved by shareholders, who are scheduled to hold a meeting in the middle of October.
Yoo Chang-soo, former CEO of AIIP, is also likely to be named as vice president, along with two directors to be named by Orix Corp. of Japan.
Hyundai Merchant Marine (HMM) announced that Japanese financial services group Orix Corp's private equity arm has been selected as the preferred bidder for its controlling stake in affiliated stockbroking firm Hyundai Securities.
The development comes after some bidders submitted letters of intent.
In a Korea Exchange filing, HMM, South Korea's second biggest shipping company, said the sale of its 36 percent stake in Hyundai Securities to Orix Private Equity Korea is part of its parent company Hyundai Group's strategy to raise liquidity to avert a credit crisis.
Orix is expected to pay about 1 trillion won ($913M) for the stake, reports said.
Hyundai Group, which encountered financial difficulties after the global financial crisis and the suspension of its tours to North Korea, needs to raise 3.3 trillion won to boost its liquidity and repay debts. So far, it has generated more than 2 trillion won from selling a shipping terminal in Busan, spinning off its LNG shipping business and the sale of various other properties and stock holdings.
HMM's main creditor, Korea Development Bank, is handling the Hyundai Securities stake sale as well as the sale of Hyundai Group's stake in Hyundai Logistics.
Last July, Hyundai Group sold its 88.8 percent stake in Hyundai Logistics, also to Orix, for 600 billion won.
Hyundai Securities Korea is a financial services firm based in Seoul with 2,500 employees and 137 offices throughout the country. With stricter regulations from the government’s Financial Supervisory Service regarding data loss, Hyundai Securities needed a solution to monitor and protect sensitive customer data. The company turned to Symantec for data loss prevention, security, data protection, and storage management solutions. Results include 90 percent of non-compliant data access blocked and no significant damage from viruses or malware since deployment.
Reaching the top
The Chinese have a saying: “People should adjust to new circumstances to survive and win.” It’s a motto easily applied to Hyundai Securities Korea, the leading financial services firm in the country. By diversifying its business offerings in response to changing economic conditions, the company grew 13 percent between 2008 and 2009, despite the global financial crisis.
With continued success, Hyundai Securities has become one of the most visible financial firms in Asia. While such brand exposure is good for increasing market share, it also makes the company a high-profile target of cybercriminals intent on stealing valuable company information. With 2,500 employees involved in numerous daily transactions with clients, the opportunities for cyber-theft are numerous.
Orix Corporation is a financial services group headquartered in Minato, Tokyo, and Osaka, Japan. It is also known as the majority owner of the Orix Buffaloes baseball team in Nippon Professional Baseball.
Orix offers leasing, lending, rentals, life insurance, real estate financing and development, venture capital, investment and retail banking, commodities funds and securities brokering. In addition to expanding its offerings, Orix has also expanded globally, offering financial services in North America, Asia, the Middle East and Northern Africa. Divisions include Japan-based Orix Auto Leasing Corporation, which operates in other countries through subsidiaries such as Orix Auto Leasing (Thailand) Co., Ltd.
Orix was established 17 April 1964 as Orient Leasing Co., Ltd.
The company's name was changed to Orix Corporation in 1989.
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