Hanwha Investment & Securities will seek a capital boost of up to 900 billion won to enter the integrated financial investment business category and expand its digital asset business.

The company on Tuesday held a board meeting and approved a 500 billion won third-party share sale and the issuance of up to 400 billion won in hybrid capital securities.

The 500 billion won share sale will be conducted through a third-party allocation to its largest shareholder, Hanwha Asset Management, and Hanwha Life, the parent company of Hanwha Asset Management.

The company also plans to issue up to 400 billion won in hybrid capital securities in the form of privately placed perpetual bonds. It plans to use the funds to strengthen its financial soundness and build a capital base for entry into the integrated financial investment business category.

It plans to use the capital to expand asset management and investment capacity in existing core businesses. It aims to improve profitability and strengthen competitiveness in its core securities business.

It also plans to invest capital in its digital asset business, which it is pursuing as a next-generation growth engine.

Hanwha Investment & Securities will consider strategic partnerships to build its own digital-asset platform and secure blockchain infrastructure. It also plans to expand collaboration with related global companies. It aims to secure new business opportunities in digital finance beyond its existing securities business.

The capital increase is also significant as it lays the groundwork for entering the integrated financial investment business category. Hanwha Investment & Securities plans to push ahead with entry by expanding its business scope and investment capacity based on stronger capital.

CEO Byeong-ho Jang (장병호) said the capital increase was a decision to go beyond simple expansion in scale and secure future growth engines preemptively, based on a stable financial foundation, while leading innovation in digital finance.

He added that Hanwha Investment & Securities will leap into the integrated financial investment business category and establish itself as a leading financial firm with differentiated competitiveness.