Woori returns to investment banking after 10-year hiatus

Woori Financial Group Chairman Yim Jong-ryong (second left), Woori Investment & Securities CEO Nam Ki-cheon (third left) and officials at the securities firm pose for photos during an inauguration ceremony held at the firm's headquarters in Yeouido, western Seoul, Thursday. (Woori Investment & Securities)

Woori Investment & Securities, a brokerage house under Woori Financial Group, is poised to bolster its presence in investment banking, backing the potential of its group affiliates.

The securities firm, formed through the merger of Woori Investment Bank and Korea Foss Securities, officially launched Thursday. The launch comes nearly 10 years after Woori Financial Group sold its securities firm to NongHyup Financial Group in 2014.

“Woori Investment & Securities will be a key affiliate for Woori Financial Group,” the securities firm’s inaugural CEO Nam Ki-cheon said at a press event held Monday in Seoul.

“We will put all capabilities into rebuilding Woori Financial Group’s prestigious reputation in investment banking,” he said.

With the addition of Woori Investment & Securities, all five top financial groups here -- Woori, KB Kookmin, Hana, Shinhan and NongHyup -- now have a brokerage arm.

Woori Investment & Securities has set off as a mid-tier brokerage house. It ranks 18th in the industry, with a capital base of around 1.15 trillion won ($850 million).

“This year, we will focus on nurturing business infrastructure for long-term growth, possibly raising the equity base through a paid-in capital increase or another mergers and acquisitions process,” Nam said.

“An additional M&A could happen in two to three years,” Nam said. “We will look into companies that can boost synergy by filling in spots where Woori Investment & Securities cannot reach in the short term.”

In the meantime, Woori Investment & Securities will focus on strengthening its investment banking activities. Yang Wan-gyu, vice president and head of investment banking, explained the brokerage house has secured about 4 trillion won for the cause.

Its sales and trading unit will operate as a “bridge” between investment banking and retail. Through expanding business to foreign bonds and alternative assets, it plans to increase its assets under management to 15 trillion won by 2018.

Backing on the group's synergy, the brokerage house plans to set up a mutual fund of 2 trillion won with its affiliates, leading investments in project financing deals.

To strengthen the retail sector, Woori Investment & Securities will work to secure over 30,000 high-net-worth individuals by 2026 by using the network of 20 million customers under Woori Financial Group.

While the financial group plans to introduce a “super app” that will provide all services offered by its affiliates this year, the brokerage house will also work to introduce its key services, including the mobile trading system, through the app.

“By partnering with the group’s affiliates such as Woori Bank and Woori Venture Partners, we will become a total financial solution provider, offering all services needed by small, medium and large-sized companies, depending on their growth cycle,” Nam said.

By Im Eun-byel(silverstar@heraldcorp.com)