Looking Back Proudly at 41 Years in Operation

KDB Daewoo Securities celebrates anniversary of its foundation, pledges to be top global player

KDB Daewoo Securities Co. celebrated its 41st anniversary in a ceremony at its auditorium on Sept. 23 with 200 officials and staff in attendance, led by President Im Kee-young.
In his speech, President Im looked back at the past achievements of the leading securities company in Korea, applauding the way the company managed to lead the industry at the top amid the rapidly changing financial environment and coping with every challenge that came in its path toward becoming a leading global financial company.
"With a strong cooperative system with KDB, we shall try to secure a sustainable growth engine," the CEO said.
Im laid out the strategies to take the company forward, including a strong effort to build up its operations overseas, making every part of the company related to investment banking strong, securing a good position in the areas of prime brokerage and hedge fund management, and strengthening its customer base.
Im said the company will increase the capital of its subsidiaries in Beijing, Singapore and Hong Kong in order to strengthen its Asian base on its way to expanding its global operations.
Since its establishment in September 1970, the company has grown to include 3,261 employees at 129 branches and six overseas networks. Today, it ranks among the nation's top domestic brokers, with the highest market share of commission revenue in the brokerage industry with around 9 percent. The company also has its competitive advantage in underwriting and is moving further to build a strong track record in principal investments. Also, it sustains the highest level of net figures in the Korean Securities Industry. In close cooperation with Korea Development Bank (KDB), room remains for greater synergy ahead.
By actively practicing their code of ethics, Daewoo Securities has the highest ethical standard in Korea with a solid foundation as "a leading company with trustworthiness and respect."
The company announced in a public notice on Sept. 7 that it will increase its capital by 1.4 trillion won by offering new shares.
The public 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 the payment date set for Nov. 3.
The company's capital as of June 30 was 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 will be a next generation trading system to help the company advance into the prime brokerage market by infusing hedge funds into its operations.
An official of the company said the capital increase is aimed at building a foundation for the company's new business territories and strengthening its competitive power. It will also give new impetus to be a top investment bank with its internal reforms of the past couple of years as a base. nw

Key executives of KDB Daewoo Securities Co. led by CEO Im Kee-young, cut a cake at a ceremony for its 41st anniversary on Sept. 23 at the company's auditorium.

Photo on courtesy of Daewoo Securities