Daishin Securities to raise capital to become comprehensive investment company

Daishin Securities Co. headquarters in Seoul [Courtesy of Daishin Securities]

South Korea’s Daishin Securities Co. will sell its headquarters building to obtain the qualification to become a comprehensive financial investment company with 3 trillion won ($2.4 billion) or more in equity capital.

According to the financial investment industry on Tuesday, Daishin Securities has set a goal of obtaining a permit for a comprehensive financial investment business in the first half of next year during a recent management meeting.

To achieve the goal, it plans to sell its headquarters building, Daishin 343, by the end of this year, for an estimated price of over 600 billion won.

The company also plans to perform asset revaluation for some of the buildings it owns.

“This is part of our efforts to raise capital to qualify as a comprehensive financial investment business,” said an unnamed official from the company. “We are aiming to raise more than 3 trillion won in equity capital through affiliate dividends as well as the proceeds from selling the headquarters building by the end of the year.”

Earlier, Daishin Financial Group Chairman Lee Eo-ryung said that the group will expand its external growth by achieving 3 trillion won in equity capital.

It plans to build consolidated equity in the 10 trillion won range by 2031 by strengthening the business fundamentals of its major affiliates.

A securities firm’s equity capital is a key indicator of its business size and position in the market. Increased equity capital allows for greater investment capacity and enhanced competitiveness through business diversification.

Equity capital expansion is a key challenge for brokerage houses as the share of their revenue from investment banking is on the rise.

To qualify as a comprehensive financial investment company, a securities firm should be equipped with more than 3 trillion won in equity capital. Securities firms that meet the requirement can apply to the Financial Services Commission to be named a comprehensive financial investment company.