NH Investment & Securities has moved to raise 400 billion won through a rights issue, throwing down the gauntlet in the individual managed account (IMA) market. As a latecomer following Korea Investment & Securities Co. and Mirae Asset Securities, the firm plans to differentiate itself with a stable asset management stance and a sales strategy that drastically lowers the retail (individual client) entry barrier.
On the 2nd, NH Investment & Securities said it will proceed with a 400 billion won third-party allotment rights issue to NH NongHyup Financial Group. Of the funds raised through this issuance, 200 billion won will be used to bolster capital capacity for expanding the IMA business, and the remaining 200 billion won will go toward expanding credit provision.
◇ New growth engine in the IB division: IMA
Behind NH Investment & Securities' large-scale capital increase is the high growth potential of the IMA market. Commercial paper, the traditional core tool securities firms used to raise large sums, has been legally capped at up to 200% of equity. IMAs, by contrast, have no such funding limit. From a securities firm's perspective, capital secured via IMAs can be reinvested in corporate finance (IB), acquisition finance, and alternative investments to boost revenue. As the size of managed funds grows, capital efficiency and profits rise exponentially, making IMAs a new growth engine for the IB division.
A market environment that has turned favorable to principal-protected IMA products is also a tailwind. In Nov. last year, Korea Investment & Securities Co. and Mirae Asset Securities launched the first IMAs and sold out 1 trillion won and 100 billion won, respectively, but IMA sales pitched as mid-to-low interest rate products paused when the KOSPI's annual return topped 70% thereafter. Recently, however, as market volatility has increased, demand has been flowing back into stable IMAs. In fact, the two recent IMA offerings from NH Investment & Securities—No. 1 (400 billion won) and No. 2 (120 billion won), totaling 520 billion won—sold out in half a day.
NH Investment & Securities is expected to secure financial soundness through this rights issue and move in earnest to expand IMAs. As of the end of the first quarter, the net capital ratio (NCR) of NH Investment & Securities stood at 159.3%, a relatively lower capital buffer compared with major large securities firms. Because IMAs carry a principal guarantee obligation, increasing issuance also raises a securities firm's risk asset (risk amount), so the NCR must be maintained above 100%. Once the rights issue is completed, the company's standalone equity capital will expand to 9 trillion won, giving it the clear firepower to target the IMA market.
◇ Three distinct IMA strategies at Korea Investment, Mirae Asset, and NH Investment
NH Investment & Securities is entering the IMA market—preempted by Korea Investment & Securities Co. and Mirae Asset Securities—with a focus on "stability." Rather than using IMA funding as high-risk venture capital, it plans to operate mainly with interest-bearing stable products, centering on high-quality IB deals such as acquisition finance, corporate loans, and corporate bonds. It is also known to be planning a high-risk, high-return IMA design that offers yields higher than the current 4%, aligned with future market conditions.
A strategy to drastically lower entry barriers and quickly attract funds from individual investors also worked. NH Investment & Securities slashed the minimum subscription to 100,000 won. Considering that the minimum for IMAs previously launched by Mirae Asset Securities and Korea Investment & Securities Co. was 1 million won, the threshold has been cut to one-tenth. As a result, 45% of all subscribers to NH Investment & Securities' first IMA product were retail (individual clients).
Mirae Asset Securities, similar to NH Investment & Securities, has made stable operations its top priority. Given it must pay a fixed 4% return with a 2–3 year maturity, it is proceeding with sequential IMA issuances of 100 billion won each to diversify risk, rather than expanding issuance excessively. In terms of product composition, more than 70% is reportedly allocated to interest income assets such as bonds, corporate loans, and acquisition finance, with around 18% invested in mezzanine and unlisted stocks. Mirae Asset Securities has issued about 300 billion won in total through IMA No. 3.
Korea Investment & Securities Co., by contrast, is leading the IMA market more aggressively than its rivals. With proceeds from its first product, the firm moved swiftly into global alternative investment assets that can secure high margins, such as additional tier-1 capital securities, large M&A acquisition finance, and overseas private debt. This reflects the firm's distinctive high-risk, high-return house profile built as a traditional "IB powerhouse." Despite launching a dominant first tranche of 1 trillion won—far exceeding peers—it sold out in four days.
Meanwhile, three securities firms are currently licensed to issue IMAs: Korea Investment & Securities Co. (Nov. 2025), Mirae Asset Securities (Nov. 2025), and NH Investment & Securities (Mar. 2026). KB Securities is reportedly preparing a large 500 billion won rights issue to enter the IMA market, while Samsung Securities and Meritz Securities are making all-out efforts to obtain commercial paper issuance approval.