KCGI, known as the 'Kang Seong-bu Fund,' has acquired Hanyang Securities. This comes about 10 months after participating in the sale bidding.
KCGI announced on the 18th that it has acquired 3,766,973 shares (29.6% stake) of Hanyang Securities at 57,500 won per share, totaling 216.7 billion won. KCGI signed a stock purchase agreement (SPA) with Hanyang Academy, the largest shareholder of Hanyang Securities, last September. However, since March of this year, a tax investigation has been ongoing, leading to a temporary halt in the financial authorities' eligibility review of major shareholders. Following the end of the tax investigation, the final approval process by the Financial Services Commission was completed this month.
KCGI presented a blueprint to elevate Hanyang Securities as a large securities company with more than 1 trillion won in equity. To achieve this, it plans to accelerate business restructuring efforts. To strengthen the retail bond market, it decided to actively expand its personal customer base.
The appointment of Kim Byeong-cheol, former CEO of KCGI Asset Management, as the new CEO of Hanyang Securities appears to be part of this strategy. According to KCGI, Kim is referred to as 'the wizard of bonds.' Under his leadership, KCGI Asset Management achieved a 23.5 percentage point excess return over the benchmark with its 'KCGI Korea Fund' in 2024, outperforming the second-ranked fund by more than double and ranking first among equity funds.
KCGI CEO Kang Seong-bu, also a former top analyst in bonds, is expected to contribute to securing competitive capabilities in bond management aimed at strengthening the asset management sector.
KCGI stated that it will also enhance the stability of Hanyang Securities in the investment banking (IB) and management sectors. To achieve this, plans are in place to introduce ▲a risk management system ▲an investment opportunity discovery system ▲a performance compensation system (amoeba management).
KCGI said it would establish and operate an audit committee and create a system where all employees are evaluated based on fair performance to enhance shareholder value. It also revealed its goal to improve the return on equity (ROE) of Hanyang Securities based on active shareholder returns and efficient capital utilization, thereby prompting a market re-evaluation.
KCGI stated, 'We will develop and pass on Hanyang Securities' long history and tradition, growing it into a securities firm that provides dreams and hopes to its members,' and added, 'We will do our best to become a model case for governance improvement and corporate value enhancement that satisfies all stakeholders, including shareholders, creditors, and customers.' Furthermore, it noted, 'We will proactively utilize artificial intelligence (AI) to respond actively to changes in the financial environment and become a leader in financial innovation.'