NH Investment & Securities said on Thursday it will strengthen its "N2 Stock Compensation" tie-in service with Quotalab so companies can use it to secure top talent and as a reward system for employees' performance contributions.

NH Investment & Securities is moving to strengthen related services as employee stock compensation schemes are expected to expand rapidly in the market due to a revision to the Commercial Act that took effect on March 6.

Stock compensation schemes allow companies to provide rewards to employees through forms such as RSUs (restricted stock units), RSAs (restricted stock awards) and employee stock ownership association operations. Global companies actively use them to secure key talent and encourage long-term performance.

In South Korea, the market is drawing attention as the adoption of compensation schemes using treasury shares is expected to grow after a third revision to the Commercial Act passed, making the cancellation of treasury shares mandatory.

NH Investment & Securities said it has provided stock compensation scheme services worth about 1.3 billion won to around 4,500 employees, including at Nexen Tire and Krafton, since launching the service last year. It said it is in talks with several companies on adopting related services.

Kang Min-hoon (강민훈), head of digital business at NH Investment & Securities, said stock compensation schemes are a key tool that aligns the interests of companies and employees and drives long-term corporate growth. He said the firm will continue expanding platform-based services that companies and employees can use conveniently, as the ways to use treasury shares are expected to diversify after the Commercial Act revision.