Focus on IB, Retail Sector

New CEO Im spells out his vision to make Daewoo Securities leading global IB, upgrade retail sector

Daewoo Securities Co. on the occasion of the first anniversary of the global financial crisis published a special publication to analyze the possibilities for new growth for Korea’s stock market and industries based on its observation on the world economy including the economic prospects of the U.S. and China.
The securities company’s research institute compiled the reports made by analysts who visited the U.S. and China to meet with analysts and fund managers in the two countries to find out what they think about their countries economies and financial situations in the coming years as the global financial crisis is on the verge of settling down.
They particularly focused on the required conditions for the global economy to recover fully in terms of structure , especially, the economy of China, which has been acting the role of a relief pitcher for the world economy following the global economic crisis.
They also tried to find out the timing of the exit policies of major countries in the world including Korea and their levels and the power of the Korean business firms, which stood strong against the turbulences from the global economic crisis, along with their future outlooks
With Hong Kong as a base for its Asia operation in such countries as China and other southeast Asian countries, he would like to make Daewoo Securities to become a top investment bank in the region, said President Im Kee-young of Daewoo Securities and Investment Co.
During his first news conference as head of the securities company, he said he would like to make the company to bring up the share of profit from the international operation to 30 percent annually on the way to make the company a top investment bank not only at home, but also in Asia.
The new CEO said he would like to expand brokerage fee income from handling foreign investments in domestic stocks, bonds and ipo and strengthen principal investment, bond issuance capacity and also expand the company’s handling of M&As for customer firms. Im said he will also make the company globally competitive as a top company by upgrading its capacity to make profits by maximizing its synergy with the Korea Development Bank, its major shareholder and become more socially responsible by expanding its social services.
The CEO said he will also eye expanding the company’s business territory taking advantage of the launch of the KDB Financial Group through synergy. He said the company will try to develop various kinds of new financial products and take on asset management premium consulting―all dedicated to boost its ROE.
In detail, he said he will look at creating synergy between KDB’s key business areas such as bond issuance, M&As, private equity funds and Daewoo Securities strong areas including stock issuance, research and retail capacities so that the company can undertake big deals.
The new CEO said he will steer the company to utilize KDB’s abundant know-how in investment banking to make itself a leading IB in the country and create profits.
He also promised that the company will take on social services to the extent of its position as a top IB in the country. He will reform the company’s current social service program to make it more realistic with the company returning part of its income to society.
To that end, he said he will manage the company so that employees would exercise initiatives creatively as if they are working for a top-class company in the country.
Daewoo Securities is a leading full-service investment firm offering a wide range of financial services in South Korea, such as securities trading and brokerage, underwriting, asset management, and international corporate finance. The company has a stronghold in the brokerage market and is a viable top IB player in the Korean market.
Since its establishment in Sept. 1970, the company has grown to include 3,281 employees in 124 branches and five overseas networks. Today, it ranks among the nation’s top domestic brokers, with the highest market share in brokerage business with around 9% in terms of both commission revenue and trading value. The company also has its competitive advantage in underwriting, and is moving further to build a strong track record in principal investments etc. Also it sustains the highest level of net figures in the Korean Securities Industry. In close cooperation with Korea Development Bank (its majority shareholder with 39.1%), room remains for greater synergy ahead. nw

President Im Kee-young of Daewoo Securities Co.

The Daewoo Securities building in Seoul.