This article was displayed on the ChosunBiz MoneyMove (MM) website at 4:57 p.m. on Jan. 13, 2026.
Moneylender The LEADCORP borrowed 40 billion won from Meritz Securities. It pledged about 35% of the equity in its subsidiary, the new technology business finance company MASON CAPITAL, as collateral. Meritz Securities has aggressively increased revenue by lending at relatively high interest rates to corporations in financial difficulty, and this time it is drawing attention because the borrower is a moneylender specializing in high-interest loans.
According to the investment bank (IB) industry on the 13th, The LEADCORP signed a 40 billion won stock collateral loan agreement with Meritz Securities on the 9th. The collateral setting amount is 56 billion won, or 140% of the loan. The maximum secured amount on the claim is typically set at about 120%–140% of the amount borrowed.
This stock collateral loan was arranged to refinance money previously borrowed by The LEADCORP from aluminum alloy manufacturing corporations Pungjeon Nonferrous Metals.
In May last year, as The LEADCORP acquired MASON CAPITAL for 61.6 billion won from domestic private equity fund (PEF) manager Cactus Private Equity, it received a 20 billion won stock collateral loan from Pungjeon Nonferrous Metals. It is interpreted that the company needed funds urgently as it also carried out a 30 billion won rights offering immediately after acquiring management control. The loan agreement was originally set to expire in July last year but was extended to January this year. It appears the funds were initially raised on a temporary basis in the form of a bridge loan.
An IB industry official said, "The LEADCORP likely needed funds urgently because it had to complete the acquisition of MASON CAPITAL in May last year and proceed immediately with a rights offering," and added, "It seems time was tight to wait for a securities firm's collateral loan review." For this reason, it is interpreted that the company first borrowed money for a short period from Pungjeon Nonferrous Metals, then opted to switch to a securities firm later.
Looking at the stock collateral loan agreement with Meritz Securities, if the collateral rights are fully exercised, The LEADCORP's equity stake in MASON CAPITAL would fall from 62.99% to 28.28%. If the collateral is enforced, the largest shareholder would become Meritz Securities.
What stands out is the gap between the collateral value and the maximum secured claim. The market value of the 73,648,200 MASON CAPITAL shares pledged as collateral this time is only 18 billion won (based on the closing price on the 13th).
Therefore, the market interprets that rather than lending with the intention of fully recouping the principal by selling the collateral shares, Meritz Securities likely took a positive view of The LEADCORP's own repayment capacity.
The LEADCORP's repayment capacity is not easy to judge simply based on current assets (assets that can be converted to cash within a year). At the end of the third quarter last year, current assets were 718.4 billion won, but 629 billion won of that was money lent to customers (loan receivables). Cash and cash equivalents on hand were 42.2 billion won, and short-term financial products were about 23.1 billion won.
However, with third-quarter cumulative interest received at 94.1 billion won far exceeding interest paid at 29.6 billion won, and operating cash flow at a positive 10.3 billion won, some analysts say Meritz Securities likely executed the loan based on The LEADCORP's cash generation from interest income and the possibility of refinancing rather than disposing of the collateral shares.
It also appears that the fact the MASON CAPITAL shares pledged as collateral are the controlling shareholder's management equity was reflected in the valuation. When The LEADCORP acquired MASON CAPITAL, the per-share price was 856 won, far exceeding twice the share price (320–380 won) at the time the stock purchase agreement was signed.
Meritz Securities has actively pursued revenue by issuing high-interest loans to corporations experiencing financial difficulties. There have often been cases where the annual rate exceeded 10%. At the end of 2024, it lent to Polaris Shipping at an annual rate of 12.5%, and in the same year applied a mid-10% range rate to M Capital.