Korea Investment and Securities Co. takes over securities firms in Asia one after another to show its clout after setting earnings record and boosting ROE to 12% in 2017
President Ryu Sang-ho, 6th R, is shown in this photo session taken after signing an MOU with top officials of Danpac Securities Co. in Jakarta, Indonesia, to take over a majority stake in the Indonesian securities firm in December, last year.(Photo:KIS)
Korea Investment and Securities Co. (KIS) has become a leading securities firm by restructuring its operational structure to diverse and stable by picking up investment banking and asset management, no longer relying on the fees from the trust accounts.
The securities firm led the industry as the most profitable company from 2011 to 2016. Last year, the company logged a record annual profit amounting to 525.3 billion won with ROE reaching 12 percent level up from around 10 percent, the industry’s average. The company retained its position as the top IB firm by virtue of boosting its capital to 4 trillion won in 2016 to build a frame to be a top IB firm. Last November, the company got a license to offer short-term financing for the first time in the securities industry and has been successfully handling the sale of the first notes. The operation has been appealing to the investors looking for not such a high return for their investments.
He company has also been intensively pushing its overseas operation by working on a plan to be a leading IB firm in Asia.
The company plans to turn Danpac Securities Co., in Indonesia, into an international company as soon as it gets official approval for its takeover so that it will be a leading firm in both on and offline operation with a variety of products and services. The Korean parent company plans to have its Indonesian affiliate operate such new facilities as Korean-type home trading systems and mobile trading systems, enhancing the role of agency for bond and stock retailing.
President Ryu Sang-ho said KIS has a record of taking over mid-sized securities firms in Vietnam, such as one ranked 50th in the industry, and helping it join the top-10 in five years. The company was formerly known as Korea Investment Trust Management & Securities Co., Ltd. and changed its name to Korea Investment & Securities Co., Ltd. in June 2003. It was founded in 1974 and is based in Seoul.
Korea Investment & Securities Co., Ltd. operates as a subsidiary of Korea Investment Holdings Co.
KIS provides financial and merchant banking services in South Korea and internationally. The company offers brokerage services for domestic stocks and futures/options to foreign institutional investors; and brokerage services for Korean investors to invest overseas, including overseas stocks and bonds. It also provides brokerage services for stock borrowing and lending; corporate finance; and investment funds.
In addition, the company offers bond brokerage and analysis/bond management services; and financing consulting services for initial public offerings ranging from establishment to follow-up after listing.
Further, it provides consultation services on the privatization in public companies, and mergers and acquisition; projects and structured finance services; private banking services; derivatives, such as futures, options, and swaps; and onshore fund products that invest in Korea and overseas securities markets.