NH Nonghyup Financial Group Executes First Paid-in Capital Increase Since Spin-off

[Asia Economy Reporter Oh Hyung-gil] NH Nonghyup Financial Group is conducting a paid-in capital increase worth 1.1 trillion KRW.

According to the industry on the 27th, Nonghyup Financial unanimously resolved at the board meeting on the 24th to carry out a paid-in capital increase totaling 1.1121 trillion KRW. This is the first shareholder allocation paid-in capital increase in 10 years since the 2012 separation of credit and economic businesses.

This paid-in capital increase will be conducted through a shareholder allocation method. Nonghyup Central Association, which owns all issued shares, will bear the entire investment amount. The payment date is February 3rd of next year.

This capital increase is interpreted as an effort to improve the capital adequacy of its subsidiary Nonghyup Bank, which experienced a loan suspension for four months due to a sharp rise in household debt growth rate. Some also view that by securing large-scale funds, Nonghyup Financial's possibility of M&A (mergers and acquisitions) involving non-bank affiliates has increased.

An official from Nonghyup Financial said, “Until now, Nonghyup Financial has raised funds through bond issuance, etc.,” and added, “(This is the first time since the holding company was established that Nonghyup Central Association is providing funds to Nonghyup Financial.)”

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