Korea Investment and Securities (KIS) has lately solidified the operation of its investment banking, sales and trading to diversify the basic business winds as a securities firm and set out to strengthen the base of its quest to become an expert Internet bank while expanding its operational reach.
The securities firm has been following the moves to balance its business portfolio and operational structure as a quick fix to record the highest profit among securities firms in Korea. Korea Investment & Securities (KIS) has forged a partnership with two Chinese brokerage houses to bolster its investment banking business in the Chinese market, the firm said on Sept. 8.
The major South Korean securities broker signed a memorandum of understanding with Beijing-based Founder Securities and China Minzu Securities on strategic alliances for cross-border M&A advisory services and real estate investment.
“We will push for further global network expansion to take a new leap to become Asia’s top investment bank,” the firm’s president, Ryu Sang-ho, said.
Founder Securities is China’s 10th largest securities firm, which has been offering investment banking services through Credit Suisse Founder Securities, a joint venture established by the firm and Credit Suisse.
Minzu Securities is an investment bank that was acquired by Founder Securities in 2014. The alliance is expected to enable Korea Investment & Securities to expand its footprint in China’s IB market as an underwriter for equity securities including initial public offerings and M&A advisor.
Korea Investment & Securities Co., Ltd. (KIS) was re-formed in June 2005 through the merger of the former Korea Investment & Securities Co. (KITC) with Dongwon Securities. Both companies had played pivotal roles in driving the growth of the Korean securities market.
The merger has allowed KIS to develop a well-balanced revenue structure consisting of asset management, securities brokerage, corporate financing and equity trading, which is unlike the brokerage fee dominated revenue structure of most domestic securities companies. The new KIS was able to post a stunning 729.3 billion won in profits in the financial year to March 2006, a record in the industry, by taking advantage of the economies of scale that enabled the new entity to rapidly gain momentum for enhanced performance.
The key business areas of KIS are investment banking and distribution of fund products. In addition to its securities brokerage operations, it has already become the leading player in many areas of investment banking in Korea, such as IPO issuance and project financing, while the assets of fund management products sold exceed US$20 billion. Leveraging its industry-leading experts and abundant experience, KIS offers comprehensive financial services covering the full spectrum of corporate financing from the fostering of small and medium sized enterprises to the issuance of stocks, bonds, off-shore securities, and asset-backed securities (ABS).
KIS also signaled its entry into the Internet banking operation through taking over a majority stake (54 percent) in Kakao Bank, which started operations at the end of 2016. KIS plans to provide its diverse financial products through Kakao Bank including funds, and ELS to expand the customer base. President Ryu Sang-ho said, “we plan to come up with new financial products through the Interne banking by strengthening our preparation to create synergy with the Internet bank.”
KIS has been making intensive moves to be a leading global securities firm under the target, “to be a leading securities firm in Asia” by expanding its overseas operation.
KIS Vietnam, the securities firm that KIS took over in 2010 in Vietnam, has recently jumped to the 9th largest in terms of operations in the country, up from 50th.
The company opened an office in Jakarta, Indonesia, to spearhead its operation there.
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A building in Seoul where KIS has offices.(Photos: KIS)
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