Daewoo Securities to Expand Capital

KDB affiliate to invest 1.4 tln won to build IT infrastructure and to foster IB activities

KDB Daewoo Securities Co. announced in a public notice on Sept. 7 that it will increase its capital by 1.4 trillion won by offering new shares.
The notice said the standard date for distribution of new shares will be Sept. 23 and the subscription request for old shares will be held on Oct. 31 and Nov. 1 with payment date set for Nov. 3.
The company's capital as of June 30 amounted to 2.68 trillion won and the infusion of new capital would bring the company's total capital to over 4 trillion won, making it the first securities firm in Korea with that much capital.
According to the draft for the revision of the Capital Market Law, large investment banks should have at least 1 trillion won more than their usual three trillion won in capital. Once an investor has the qualification to be an investment banking investor, the IB can provide funds to hedge funds as a prime broker.
KDB Daewoo plans to invest the increased portion of its capital in its advancement into financial markets abroad, investments in new projects and in the expansion of its IT infrastructure.
The company also plans to use its subsidiary in Hong Kong as its base for overseas operations and will increase its capital step by step, in line with its policy to strengthen its overseas subsidiaries. The company will invest in the IT infrastructure build-up to the extent that it would be next generation trading system to help the company advance into the prime brokerage market by infusing hedge funds into its operation.
An official of the company said the capital increase is aimed at building a foundation for the company's new business territories in order to be a major player by strengthening its competitive power. It will also give the company new impetus to be a top investment bank with its internal reforms that have taken place in the past couple of years as a base.
For 40 years of Korea's financial history, the company has led the Korean securities market, creating maximum value for customer satisfaction and shareholder profit. Expanding their role from a leader in the securities industry to become a pioneer in financial services and a world-class securities firm, advancing the development of Korea's capital market, they are poised to start a new era of financial service.
Based on their cutting-edge competitiveness recognized by the financial service industry, they will create and lead a market where the highest profits are made through trust and principle.
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 September 1970, the company has grown to include 3,261 employees in 129 branches and six overseas networks. Today, it ranks among the nation's top domestic brokers, with the highest market share in the brokerage business at around 9 percent in terms of commission revenue. 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, room remains for greater synergy ahead. nw

Company Description

Establishment
September 1970
CEO
Kee Young Im
No. of Employees
3,261
Network
Domestic 129 branches (1 PB Class, 15 WM Class, 113 branches)
Credit Rating
AA Positive (Korea Ratings)
Shares in Issue
204 mln shares
- Common
190 mln shares
- Preferred
14 mln shares
Majority Shareholder
KDB holding company (Ownership of 39.1%)
* As of the end of March 2010

President Im Kee-young of KDB Daewoo Securities Co.

Photo on Courtesy of Daewoo Securities