Hanwha Investment & Securities (003530) is pushing to become a comprehensive financial investment business operator by raising up to 900 billion won ($645 million) in capital. The strategy is to strengthen its financial soundness and expand investment capacity in core businesses while securing a foundation for growth in digital assets.
The brokerage said it held a board meeting on the 30th and approved a 500 billion won capital increase through third-party allotment and the issuance of up to 400 billion won in hybrid capital securities.
The third-party allotment will be offered to Hanwha Asset Management, its largest shareholder, and to Hanwha Life Insurance (088350), the parent company of Hanwha Asset Management. The hybrid securities will be issued as privately placed perpetual bonds worth up to 400 billion won. Through the two measures, Hanwha Investment & Securities plans to secure a stable financial base and operating capacity while laying the groundwork for entry into the comprehensive financial investment business category.
The additional capital will be used to strengthen competitiveness in its main businesses. The company plans to expand asset management and investment capacity in core divisions and translate that into higher earnings.
The brokerage will also work to build up its digital asset capabilities. It plans to review strategic partnerships aimed at building its own digital asset platform and securing blockchain infrastructure, and to explore new growth opportunities including cooperation with leading global companies.
"This capital increase is a decision that goes beyond simple growth in scale. It is aimed at leading digital financial innovation on the basis of a stable financial footing and preemptively securing future growth drivers," said Chang Byung-ho, chief executive of Hanwha Investment & Securities. "We will move up to become a comprehensive financial investment business operator and establish ourselves as a leading financial firm with differentiated competitiveness."
