Aims to boost financial soundness, expand digital asset platform
Third-party rights offering: 500 billion won
Hybrid bond issuance: up to 400 billion won
Hanwha Investment & Securities announced Wednesday that it plans to raise 900 billion won ($663 million) in capital.
The move aims to strengthen the brokerage's financial soundness and grow its equity base to more than 3 trillion won, meeting the threshold required to qualify as a comprehensive financial investment business operator, known in Korea as a "jongtusa."
The jongtusa designation was introduced to nurture large securities firms capable of competing with global investment banks by providing companies with smoother access to growth financing. Designated firms may conduct a far broader range of corporate finance activities than ordinary brokerages.
Securities firms with equity of at least 3 trillion won may apply to the Financial Services Commission, which evaluates their risk management capabilities and internal control standards before granting the designation. Hanwha Investment & Securities' consolidated equity stood at approximately 2.26 trillion won as of the end of June.
The number of designated firms now stands at 10, after Meritz Securities was added to the list last Thursday when it was designated with equity exceeding 4 trillion won.
The capital raise will proceed through a 500 billion won third-party allotment rights offering and the issuance of hybrid bonds worth up to 400 billion won.
The 500 billion won rights offering will be directed at Hanwha Asset Management, the company's largest shareholder, and Hanwha Life Insurance, Hanwha Asset Management's parent company.
The firm also plans to issue up to 400 billion won in hybrid bonds in the form of privately placed perpetual notes.
Hanwha Investment & Securities said it intends to use the strengthened capital base to expand asset management and investment capacity in its core business segments, with the goal of generating tangible revenue growth and reinforcing its competitive position.
The company also plans to explore a range of growth opportunities, including strategic partnerships and collaboration with global industry leaders to build a proprietary digital asset platform and secure blockchain infrastructure.
"This capital raise goes beyond simple balance-sheet growth — it is a decision to lead digital financial innovation on a stable financial foundation and to proactively secure future growth engines," Chief Executive Jang Byeong-ho said. "Hanwha Investment & Securities will make the leap to jongtusa status and establish itself as a leading financial firm with differentiated competitiveness."
jiyun@heraldcorp.com
