president Ryu Sang-ho of Korea Investment and Securities Co. has been named to serve another term, making him the longest serving CEO of a securities firm in the country.
Shareholders on March 23 approved the recommendation for him to serve two more years. Ryu first became CEO of the company in 2007 at 47, youngest CEO in the financial industry, and will have stayed on the job 11 years when his extended term is up in 2018.
Ryu was credited for the brilliant growth of the company since he took over. He reformed the earnings structures of the investment banking and wealth management model so that the company’s capital rose to 4 trillion won, making the company a “super-scaled” IB entity.
He has also been given credit for the company’s early advancement into Vietnam, securing growth engines overseas, which has been owed to the CEO’s segregated strategies for overseas operations.
Born in Andong, North Gyeongsang Province, Ryu majored in business administration at Yonsei University. After a brief career at a bank, he headed to the United States to get an MBA.
Returning to Korea, he joined Daewoo Securities, working at the London office of the brokerage house. He was called a "legend" there for his performance.
He was scouted by Dongwon Securities, which is now Korea Investment and Securities, in 2002.
In 2007, he was appointed as CEO at the age of 47, the youngest CEO ever in the securities industry. He focused on strengthening wealth management of customers and enhancing investment banking, which enabled Korea Investment and Securities to prosper. Since his inauguration, customers' assets under management more than doubled to 133.5 trillion won from 63.3 trillion won. The firm also topped in the industry for four consecutive years until 2014 in terms of net profit. Its net profit totaled 284.8 billion won last year.
The company is actively advancing overseas, focusing on Southeast Asia. KIS Vietnam, which it acquired in 2010, is now among the top seven in the industry.
"I appreciate the shareholders and customers for their trust. I will do my best so that Korea Investment and Securities can rise as the top global investment bank in Asia and do its role as an industry leader to upgrade Korea's capital market," the CEO said. The biggest challenge Ryu faces is the acquisition of Hyundai Securities. If he succeeds in the deal, KIS will become the industry's top player in terms of capital and performance.
Last year, Korea Investment ran 14 IPO deals as a lead manager, the most among local brokerages. The deals included listing of such large-cap players as Samsung BioLogics and Doosan Bobcat.
The listing of the Samsung biopharmaceutical arm fetched 2.25 trillion won ($1.97 billion) and Doosan Bobcat's share offering brought in 900 billion won. The firm reportedly earned 20 billion won in commissions. It is also one of the lead managers of the scheduled IPO of Netmarble Games, which could be one of the largest offerings on the Seoul bourse this year.
Another field in which the brokerage distinguished itself was in investment. Last year, the firm took part in Woori Bank's equity sale and acquired a 4 percent stake. Also, its holding firm has a 56.7 percent stake in Kakao Bank, an internet-only lender scheduled to open later this year. "By capitalizing on Woori Bank's branch network and Kakao Bank's online network, the firm will focus on seeking new business opportunities," Ryu said in his 2017 New Year speech. Observers predict that, at a time when competition is heating up in the domestic market due to regulatory changes, Korea Investment wants Ryu to serve the next term in consideration of the firm's conservative approach in personnel matters.
The government plans to introduce plans to nurture "mega-size IBs" by offering regulatory incentives to firms whose capital exceeds 4 trillion won. Along with several other players, Korea Investment prepared to meet the standard and is gearing up for the competition. "The rivalry among mega-sized IBs will be a three-way battle between Korea Investment, NH Investment & Securities and Mirae Asset Daewoo," Ryu recently said. "We will strive to win out by resorting to our unique way of investment banking."
