Korea Investment Holdings Chairman Kim Nam-goo. (Photos: Korea Investment & Securities)

Korea Investment & Securities announced on May 10 that it will establish its own environmental, social and governance (ESG) committee under the board of directors and start strengthening the company’s sustainable management in earnest.

Korea Investment & Securities held a board meeting on May 7 and decided to establish the ESG Committee.

The ESG Committee will become the highest decision-making body that establishes basic strategies, policies and managing the implementation for ESG management.

The ESG Committee will consist of a total of three members — two outside directors and an in-house director, who is President Jung Il-moon. Outside director Kim Tae-won, executive director of Google Korea, will head up the ESG Committee.

Cho Young-tae, professor of the Graduate School of Public Health at Seoul National University will serve as a member of the ESG Committee. President Jung will be appointed as a member to actively reflect ESG-related matters on overall management.

 
Korea Investment & Securities, which declared a halt to coal-related investments for the first time among securities firms in Korea in August of last year, has been preemptively responding to ESG management.

In September, the company formed a consortium with Korea Hydro & Nuclear Power in order to acquire a 49.9 percent stake in four U.S. wind power farms.

In response to a financial market crisis caused by the spread of the COVID-19 virus, Korea Investment & Securities has been actively pursuing socially responsible investments amounting to 482.6 billion won by investing in the Financial Market Stabilization Fund and supporting the growth of innovative and venture startups.

In April, it was selected as a greenhouse gas emission trading market creator. So it is expected to contribute to reducing greenhouse gas emissions by forming reasonable prices of carbon emissions rights.

“We have been trying to fulfill our responsibilities in the non-financial, social and environmental sectors while continuing our financial growth,” said Kim Nam-goo, chairman of Korea Investment Holdings.

“With the launch of the ESG Committee, we will not only implement more consistent and systematic policies but also become a leading financial company in creating social value.”

Overseas Stock Investment Event and Multi-Lizard TRUE ELS

Korea Investment & Securities announced on June 1 that it will hold an overseas stock investment event for BanKIS users until June 24. BanKIS is an on-line stock trading service of Korea Investment & Securities.

During the event period, 50 new overseas stock trading customers will be given one share of an overseas listed company every day through a lottery.

The overseas listed company will be randomly selected among top 50 companies popular among Korean stock investors such as Google, Tesla, Nike, SPY and QQQ.

The draw will be held once a day. Customers will be given a chance to win every day until they win the lottery or the event ends. The shares will be paid to the customers’ accounts on the fifth business day including the draw date.

Meanwhile, Korea Investment & Securities announced on June 17 that it will recruit investors in the 14143rd Multi-Lizard TRUE ELS with 10 billion won as its limit by June 24. An equity-linked security is a debt instrument with variable payments linked to an equity market benchmark.

Its return will be determined based on changes in the value of its underlying assets — SK Hynix and Hyundai Motor and S&P500.

This product has a six-month step-down structure with a three-year maturity and a repayment opportunity to be given every six months.

If the value of all the basic assets are 92 percent or higher after six months, 90 percent or higher after 12 months, 87 percent or higher after 18 months, 82 percent or higher after 24 months, 80 percent or higher after 30 months and 77 percent or higher after 36 months of the standard amount, investors will be repaid with an annual return of 8.0 percent.

In addition, two lizard call options are added, so the amount of the underlying assets do not fall below 87 percent for six months and 82 percent for 12 months after setting, this ELS will automatically repay investors early with an annual return of 8 percent.

The Headquarters of Korea Investment & Securities in Yeouido, Seoul.