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Finance

Securities firms race to expand size amid IMA, investment bank push, raise 8.7 trillion won

South Korean securities firms are accelerating capital expansion as they compete to enter integrated management accounts (IMA) and become comprehensive financial investment businesses. Thirteen brokerages have raised or are seeking 8.705 trillion won this year through rights issues and hybrid capital securities, about twice last year’s total. KB Securities led with 1.7 trillion won. The capital race is tied to rules that expand permitted businesses based on equity levels, including IMA eligibility at 8 trillion won.

Finance

Shinhan Financial completes insurance puzzle with Lotte non-life deal but faces capital injection and profit recovery tasks

Shinhan Financial Group has completed the final piece of its insurance business by agreeing to buy Lotte Non-Life Insurance, but it now faces the task of improving profitability. Shinhan Financial signed an SPA to acquire 77.04% for 693.3 billion won, implying a company value of about 900 billion won. It plans to invest a total of 1.2 trillion won, including 300 billion won for capital strengthening, while analysts differ on the need for additional capital injections and the pace of profit recovery after integration.

Finance

Hana Securities first in South Korea to issue $300 million foreign currency hybrid capital securities

Hana Securities said on Wednesday it raised $300 million by issuing U.S. dollar-denominated foreign currency hybrid capital securities, the first such deal by a South Korean securities firm. It plans to use the funds for growth businesses including global investment banking, corporate finance and venture capital supply. The 30-year notes carry a call option after five years. More than 120 institutional investors joined bookbuilding, placing $1.7 billion of orders.