Kyobo Securities Decides on 250 Billion KRW Paid-in Capital Increase: "Maximizing Profit Generation"

Kyobo Securities announced on the 22nd that it has decided to proceed with a paid-in capital increase worth 250 billion KRW to strengthen its existing business competitiveness, secure new growth engines, and expedite the licensing process as a comprehensive financial investment business operator.

Kyobo Securities held a board meeting and resolved to issue 49,309,665 common shares at a price of 5,070 KRW per share through a third-party allotment to its largest shareholder, Kyobo Life Insurance. The subscription date for the new shares is set for the 29th of this month, the payment date is the 30th, and the expected listing date is the 20th of next month.

This paid-in capital increase is the first in three years since June 2020, when 200 billion KRW was raised. As a result, Kyobo Securities' equity capital will increase by approximately 15.5%, from 1.6179 trillion KRW as of the end of Q2 this year to 1.8679 trillion KRW. The net capital ratio (NCR), an indicator used to assess capital soundness, will also improve from 717.1% to 902.4% during the same period.

Through this capital increase, Kyobo Securities will secure a more stable financial soundness. It is expected that strengthening existing business competitiveness and securing new growth engines will lead to higher net income and ROE in the future. In particular, synergy effects are anticipated from entering and investing in a high-quality, high-profit IB business aligned with Kyobo Group’s ambidextrous management, enhancing asset management competitiveness, and expanding into new digital finance-based businesses.

Meanwhile, this capital increase is expected to elevate Kyobo Securities' corporate value to the next level. A Kyobo Securities official stated, "This demonstrates the strong support intention of the largest shareholder, Kyobo Life Insurance, to the market for the early acquisition of the comprehensive financial investment business operator license." They added, "Strengthening business competitiveness in new growth engines such as token securities, carbon emission rights, and digital asset businesses is expected to maximize net income generation and have a positive effect on credit rating upgrades."

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