Dongwon Financial Holding
to Merge Its Securities Unit
with Korea Investment & Securities

- Strives to become a top investment bank in Asia

Dongwon Financial Holding Co. said it plans to merge its securities unit Dongwon Securities Co. with Korea Investment & Securities, one of the nation's three asset management companies, Korea's third largest financial service group has officially acquired, as soon as possible.
Kim Nam-goo, CEO of Dongwon Financial Holding, made the remark during his meeting with reporters on Feb. 22 after inking a deal on the purchase of the state-owned asset manager, Korea Investment & Securities from Korea Deposit Insurance Corp.
Kim, also president of Dongwon Securities, said Dongwon Financial Holding plans to consolidate Dongwon Securities and Korea Investment & Securities in an effort to maximize the synergetic effects of its acquisition of the asset manager company. Details of the planned merger, including the timing, will be determined following discussions with a commissioned consulting company, he said.
"Now that the merger with Korea Investment & Securities has made Dongwon Financial Holding the No.1 company in terms of size among securities companies, the company will strive to raise its rankings to the No.1 position in the qualitative perspective," CEO Kim said.
Dongwon Financial Holding strives to become a top investment bank in Asia, he said. His company's archrival would be a securities company of a banking group, armed with powerful outlets, asset and clients, said Kim, adding that in order to offset Dongwon Financial Holding's weak point, Dongwon will seek to make a strategic alliance with a commercial bank. An informed financial analyst said Dongwon is in negotiations with a commercial bank to make a strategic alliance in a bid to redouble Dongwon Financial Holding's fund sale capability following its acquisition of Korea Investment & Securities.
By adding 2.4 trillion won worth of beneficiary certificates from Dongwon and 21.3 trillion won from Korea Investment & Securities, the acquisition will give Dongwon Financial Holding the No. 1 position in terms of beneficiary certificate sales and it will also raise the combined brokerage share to 6.69 percent, Dongwon officials said. Dongwon Financial Holding took over Korea Investment & Securities for 546.2 billion won from Korea Deposit Insurance Corp.
Dongwon Financial Holding CEO Kim said he ruled out the possibility of a massive restructuring, citing that the merger is a combination of a securities company banking on brokerage fees and a trust investment company relying on the sale of financial products as the source of its main revenues. nw

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