[Asia Exclusive] Shinhan Investment Corp. Strengthens IB... "Swift Policy Support for New Business Models"

Suggestions from the 'IBtong' Leader
The New Government's Immediate Task: Easing Policies and Systems

Interview _ Kim Sang-tae, Vice President of Mirae Asset Daewoo (Head of IB1 Division) / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Jang Hyowon] Shinhan Financial Group appointed Kim Sang-tae, a seasoned veteran in the investment banking (IB) industry, as the Global Investment Banking (GIB) CEO (co-CEO) of Shinhan Investment Corp. earlier this year. As the head of Shinhan Investment's IB division, Kim plans to strengthen collaboration with the group and reinforce the traditional IB business units, including the Equity Capital Market (ECM) and Debt Capital Market (DCM) sectors.

Kim joined Daewoo Securities in 1989, served as head of the corporate finance department in 2004, and has extensive IB experience through his roles at Meritz Securities and Eugene Investment & Securities. Since 2018, he served as the IB CEO at Mirae Asset Securities before moving to Shinhan Investment earlier this year. He has been tasked with revitalizing the securities IB division, a major source of non-interest income for Shinhan Financial Group.

His start has been favorable. In the first quarter of this year, Shinhan Investment's IB division's fee income reached 95.7 billion KRW, a 160% increase compared to the same period last year. This growth was mainly driven by achievements in real estate project financing (PF) and alternative investments. Acting as a joint lead manager for LG Energy Solution's initial public offering (IPO) also contributed to revenue expansion. Additionally, derivative profits earned by affiliated financial companies linked to IB deals were significant.

Kim is focusing on overseas alternative investments as a key IB growth area for Shinhan Investment this year. Before COVID-19, domestic IBs generated substantial profits through overseas energy and infrastructure, office buildings, hotels, and global corporate acquisition financing. However, post-pandemic, returns have declined, cooling enthusiasm.

He stated, "Alternative investments trends keep changing," adding, "Recently, we have been paying attention to the REITs market." Despite the stock market adjusting downward by more than 30% since early this year, REITs have held up well, attracting considerable investor interest. He expressed a desire to discover new REITs in advanced markets such as the U.S. and Europe, focusing on offices, retail facilities, and department stores.

He also plans to strengthen the traditional IB sectors of ECM and DCM. In particular, he intends to bolster the IPO sector, which has lacked a track record in recent years. He said, "Rather than focusing on size, if we take on companies that attract market interest and provide employees with successful IPO experiences, a more mature structure will form," and added, "We expect to play a role in the LG CNS IPO as well."

Furthermore, he noted, "The DCM division currently ranks around 5th or 6th in the industry, but we will operate with a sense of urgency," emphasizing, "We will move beyond simple corporate bond issuance arrangements to meet client needs through financial advisory and project collaboration."

Finally, he pointed out the need for government policy and regulatory easing. He argued, "The previous administration focused too much on consumer protection policies, but now it is necessary to differentiate based on investor profiles," and added, "Regulations must also quickly support companies with new business models."

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