NH Investment & Securities held a board meeting to challenge the comprehensive investment account (IMA) business and announced on the 31st that it had resolved a 650 billion won capital increase.
This capital increase was carried out to meet the 8 trillion won capital requirement for selecting IMA operators as stipulated by the Capital Markets Act. IMA, which invests customer deposits into corporate assets, is seen as a stepping stone to leap into the global investment banking (IB) sector. As of the end of last year, the equity capital of NH Investment & Securities was 7.4 trillion won.
The capital increase will be conducted through a third-party allocation method, and NongHyup, the largest shareholder, has agreed to support it. NH Investment & Securities noted that this decision was made considering the need to complete the IMA approval application to the Financial Services Commission within September to be reviewed under current conditions.
With this capital increase, NH Investment & Securities was able to meet the capital requirements for IMA approval and plans to establish a task force (TF) headed by the CEO to apply for approval within the third quarter.
Yoon Byung-woon, president of NH Investment & Securities, has emphasized the importance of retail as a core business that will lead the future growth of NH Investment & Securities since his appointment. The company plans to secure new growth momentum in retail through this capital increase.
An official from NH Investment & Securities said, "We will invest customer funds flowing into the IMA into various corporate finance fields, including venture capital, based on the IB capabilities accumulated over time," adding, "We will support growth for corporations and the real economy, and the investment returns will be returned to customers."