Hanwha Asset Management Acquires Hanwha Investment & Securities... Expanding Digital Capabilities (Update)

[Asia Economy Reporter Junho Hwang] Hanwha Asset Management secured sole management rights of Hanwha Investment & Securities on the 25th.

Hanwha Asset Management acquired 26.46% (56,761,908 shares) of Hanwha Investment & Securities held by Hanwha Group's non-financial affiliates for approximately 320.1 billion KRW (320.13716 billion KRW).

Through this, Hanwha Asset Management's stake in Hanwha Investment & Securities increased from 19.63% to 46.08%, becoming the largest shareholder. Hanwha Asset Management evaluated that acquiring sole management rights over Hanwha Investment & Securities enables faster decision-making.

Hanwha Asset Management made a purchase offer to other shareholders to accelerate entry into new businesses. They plan to pursue global business and build a digital financial ecosystem through cooperation with the securities firm. The goal is to become a top-tier asset management company in Asia. They will implement a three-stage growth strategy to expand digital influence: scaling assets under management and equity capital, globalizing business areas, and building platform investments and digital ecosystems.

To minimize market impact, Hanwha Asset Management conducted the transaction through off-hours block trading. The acquired shares are common stocks of Hanwha Investment & Securities held by Hanwha Global Asset with 26,727,398 shares (12.46%), Hanwha Hotels & Resorts with 18,709,207 shares (8.72%), and Hanwha Galleria Timeworld with 11,325,303 shares (5.28%), among others.

Hanwha Asset Management stated, "Based on the continued low-interest rate environment, increased liquidity, and strengthened capital compared to the past, operating profit and net profit in the securities business are expected to increase, allowing Hanwha Asset Management to anticipate equity-method gains."

Han Doo-hee, CEO of Hanwha Asset Management, said, "By securing management rights of Hanwha Investment & Securities, we will become a successful model of a Korean-style digital asset management company that delivers financial products on digital platforms globally," adding, "We will institutionally consolidate the previously dispersed capabilities of securities and asset management to realize economies of scale."

Meanwhile, Hanwha Asset Management received the asset management division from Hanwha Life Insurance in 2017. Its assets under custody are approximately 113 trillion KRW.

This content was produced with the assistance of AI translation services.