Why Vice Chairman Kim Yong-beom Chose NH Securities as the Facilitator for Meritz Asset Management Sale

Highly Regarded as a Leading Investment Banking Firm, NH Investment & Securities
In Negotiations with Kang Sung-bu Fund After Signing Sale MOU ... Sale Price Estimated Between 20 Billion and 50 Billion KRW

[Asia Economy Reporter Hwang Yoon-joo] Kim Yong-beom, Vice Chairman of Meritz Financial Group, is known to have directly chosen NH Investment & Securities as the advisor for the sale of Meritz Asset Management. According to the investment banking (IB) industry on the 15th, Vice Chairman Kim contacted NH Investment & Securities directly around August and requested advisory services for the sale of Meritz Asset Management through a private deal.

An industry insider from the asset management sector said, "Vice Chairman Kim regarded maintaining confidentiality as the most important point during the process of conducting the sale with full authority," and added, "After receiving Kim’s request, the senior management of NH Investment & Securities operated secretly to the extent that they did not disclose the advisory engagement to even the head of the IB division for some time."

It is interpreted that Vice Chairman Kim’s decision to request advisory services from NH Investment & Securities was influenced by the strong trust between him and President Jung Young-chae. Both were born in 1963 and were classmates in the Business Administration department at Seoul National University, class of ’82. They built a close relationship by attending many classes together during university, and after graduation, both entered the financial investment industry, maintaining their connection to this day. An IB industry insider said, "When Vice Chairman Kim worked at Credit Suisse First Boston (CSFB) in 1995, he had experience as a business partner in coverage and product areas with President Jung, who was working at Daewoo Securities at the time."

Vice Chairman Kim is especially known to have deep trust in President Jung’s IB advisory capabilities. President Jung is called a living legend in the domestic IB market. He is a first-generation IB professional with over 30 years of investment banking experience, having graduated from Daewoo Securities, known as the training ground for securities professionals. After passing through Woori Investment & Securities, he was appointed president of NH Investment & Securities in 2018 and has maintained his reputation as the "Godfather of IB."

President Jung achieved record-high performance just one year after his appointment as president of NH Investment & Securities. At that time, for the first time since the company’s founding, IB fees exceeded brokerage fees. This was a symbolic event that strengthened NH Investment & Securities’ position in the investment banking business.

Meanwhile, Meritz Financial Group has decided to sell Meritz Asset Management following the disgraceful resignation of former CEO John Lee. This decision was made based on concerns that trust in Meritz Financial Group could be shaken. Currently, Meritz Financial Group is negotiating after signing a memorandum of understanding (MOU) with the private equity fund Kang Sung-bu Fund. If Kang Sung-bu Fund acquires Meritz Asset Management, it will hold a public offering license. The sale price is estimated to be between 20 billion and 50 billion KRW. Upon completion of the sale, the advisory firm will receive approximately 2-3% of the fee as a success bonus in addition to the advisory fee.

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