"Growth Within Safety"... Daishin Securities President Oh Ik-geun Effectively Secures Third Term

Running as sole candidate in the 임추위... Confirmed at the general meeting on the 21st
Key to 3rd term: 'Growth and risk management'
Top priority: Transformation into a 종투사

Oh Ik-geun, CEO of Daishin Securities, broke the implicit '60-year-old rule' in the securities industry and effectively succeeded in a third term. Despite various adversities such as the real estate project financing (PF) defaults caused by the high-interest shock and the contract for difference (CFD) incident, his risk management capabilities stood out, and achieving strong performance despite the economic recession was the driving force behind his third term. If the agenda for Oh Ik-geun's reappointment passes at the Daishin Securities shareholders' meeting scheduled for the 21st, Daishin Securities plans to fully embark on its transformation into a comprehensive financial investment company (jongtu-sa).

Oh Ik-geun, CEO of Daishin Securities. (Provided by Daishin Securities)

According to the securities industry on the 4th, Daishin Securities held an executive recommendation committee meeting on the 29th of last month and recommended CEO Oh Ik-geun as the sole candidate for CEO. The reappointment will be finalized through the shareholders' meeting and board of directors meeting on the 21st, and if successful, he will serve his third term. At the end of last year, five securities firms including Mirae Asset Securities, Korea Investment & Securities, Samsung Securities, Meritz Securities, and Kiwoom Securities changed their CEOs en masse, creating a strong wave of generational change, but Oh avoided this and joined the ranks of long-serving CEOs.

Oh, who joined Daishin Securities in 1987, has held various positions such as head of marketing, head of human resources, head of financial management, and head of risk management. From 2013 to 2018, he served as CEO of Daishin Savings Bank, then served as vice president of Daishin Securities, head of management support, and head of the IB business division before becoming CEO of Daishin Securities in March 2020.

Oh's secret to a third term can be summarized as 'external growth and risk management.' In the securities industry, Daishin Securities is often referred to as the 'civil servant of the securities world.' This is because Daishin Securities' management strategy is not aggressive and maintains a conservative management philosophy compared to other securities firms. This conservative management policy stems from his principle that 'risk management comes first.'

For example, when Ecopro's stock price surged, the retail division of Daishin Securities requested management to lift the credit extension limit to 100% of equity capital, but this was ultimately not accepted. Daishin Securities was also free from risks related to unfair CFD trading, which was blamed for the stock price crash caused by Soci?t? G?n?rale (SG) Securities. Although the CFD-related system development was completed, Oh decided not to introduce it. The Hong Kong H-Index (Hang Seng China Enterprises Index, HSCEI) equity-linked securities (ELS), which became controversial due to incomplete sales, were also discontinued in 2016. The overall ELS sales were gradually reduced for risk management, lowering the market share to about 1% as of the end of last year. The proportion of bridge loans, which are relatively risky among real estate project finance (PF), is also managed at about 10% of the total.

Despite conservative management, performance improved. On the 7th of last month, Daishin Securities announced that its provisional results for last year showed operating profit of 184 billion KRW and net profit of 156.3 billion KRW on a consolidated basis. Operating profit decreased by 27.4% compared to the previous year due to provisions by major subsidiaries, but net profit increased by 18.7%. This strong performance during a period when the securities industry was hit hard by real estate PF defaults and the CFD incident is considered even more meaningful.

A Daishin Securities official explained, "Last year was a year of external growth, including strengthening securities equity capital through dividends from affiliates and asset revaluation of owned real estate, expanding brokerage market share through a 0% interest rate policy on credit loans within 7 days, and growth in asset management through sales of bonds and other financial products tailored to market conditions," adding, "In 2023, bond sales reached 9 trillion KRW, and total customer assets exceeded 100 trillion KRW."

His top priority ahead of the third term is the transformation into a comprehensive financial investment company. Daishin Securities plans to apply for the 10th comprehensive financial investment company license in April. The goal is to receive approval from financial authorities by the founding anniversary on June 20. If selected as a comprehensive financial investment company, the prime brokerage service credit extension limit for lending funds or consulting services to hedge funds will increase from 100% to 200% of equity capital. Additionally, it will be able to conduct foreign currency general exchange operations. Daishin Securities believes that, including the first quarter results of this year, it meets the requirements for designation as a comprehensive financial investment company. Daishin Securities' equity capital (separate basis) last year was approximately 2.85 trillion KRW.

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