Korea Investment and Securities to Implement Capital Increase of 400 Bln Won

Korea Investment and Securities announced that it will implement a 400 billion won capital increase.

Thanks to the capital increase, the securities company will be able to secure operating funds.

At the same time, its equity capital exceeded 8 trillion won, enabling the company to enter new businesses such as IMAs.

On June 16, Korea Investment Holdings announced that it will increase the capital allocation to Korea Investment and Securities by 400 billion won through a resolution of the board of directors.

The capital increase will consist of 8,000 new shares, with 0.0002275 shares allocated per existing share.

Korea Investment and Securities is a wholly owned subsidiary of Korea Investment Holdings and the capital increase was carried out with funds from Korea Investment Holdings.

As a consequence, Korea Investment and Securities’ equity capital crossed 8 trillion won. As of the end of the first quarter of this year, Korea Investment and Securities’ equity stood at 7.61 trillion won, based on unconsolidated financial statements.

Korea Investment and Securities’ equity capital has been on a sharp rise in recent years. At the end of last year, its equity stood at 6,552.8 billion won.

Since then, it has increased significantly thanks to dividend income from the sale of Kakao Bank by Korea Investment Value Asset Management and this capital increase will increase its size once again.

As its equity capital is in line with the competitiveness of a securities company, much attention is being paid to Korea Investment and Securities’ future course of action.

Securing liquidity will further enhance its financial strength. For example, Korea Investment and Securities’ net capital ratio (NCR) at the end of the first quarter was 1,836.92 percent which ranks high in the securities industry.

The increase in Korea Investment and Securities’ equity capital will raise the company’s credit facilities, such as credit loans and stock collateralized loans.

Currently, credit facilities for securities firms are 100 percent of their equity capital.

This means that Korea Investment and Securities will have a bigger size so that it will be able to boost their profitability.

It will also be able to raise its limit to the number of commercial papers it can issue.

Korea Investment and Securities will hold a pre-designated retirement pension management system (default option) event until July 31.

Retirement Pension Default Option Event

Korea Investment and Securities announced on June 16 that it will hold a pre-designated retirement pension management system event until July 31.

The event will offer coffee set coupons to the first 3,000 customers who complete default option settings for their defined contribution (DC) or individual retirement plan (IRP) accounts.

Customers who set up both DC and IRP accounts will be eligible for double the prize.

In addition, the first 2,000 customers who invest 1 million won or more in the default option product will receive additional chicken set vouchers.

The default option is a system that allows retirement pension members to automatically manage their savings in a preset way if they do not manage their savings separately.

It was introduced last year to increase the yields of retirement pensions suffering from low returns, and will be mandatory for all retirement pension members from July after a one-year grace period.

Korea Investment and Securities will hold a new sign-up event for separately taxed high yield funds for Bankis customers beginning from June 19. (Photos: Korea Investment and Securities)

Separately Taxed High Yield Fund Subscription Event

Korea Investment and Securities will hold a new sign-up event for separately taxed high yield funds beginning from June 19.

The event will provide gift certificates of up to 100,000 won, depending on the amount for new subscriptions of 1 million won or more to the separately taxed high yield funds by September 27. It will also offer benefits for signing up for funds from designated fund management firms.

Those who subscribe to the funds from Korea Investment Trust Management, Mirae Asset Global Investment and KB Asset Management for 1 million won or more can receive gift certificates of up to 50,000 won per fund management company regardless of the types of the funds.