NH Investment & Securities said on Tuesday it was officially designated an Investment Management Account (IMA) operator at a regular meeting of the Financial Services Commission. That makes it South Korea's third IMA operator, after Korea Investment & Securities and Mirae Asset Securities, which were designated in November last year.

An IMA is a product in which a securities firm collectively manages funds deposited by clients across corporate loans, venture companies, stocks and bonds, and pays the results to investors.

The operator designation evaluates a securities firm's fund management capabilities and risk management systems in a comprehensive way. It is assessed as a key system to expand the supply of risk capital in capital markets.

NH Investment & Securities moved early to bolster capital for the designation. It met the requirement of 8 trillion won in equity capital through a 650 billion won rights issue from NH NongHyup Financial Group in August last year, and applied to financial authorities for IMA operator designation in September that year.

It then cleared reviews of its business plan, checks of its internal control systems and on-site inspections by the Financial Supervisory Service. It passed deliberation and a resolution at the Securities and Futures Commission on March 11 and received final designation at the regular meeting of the Financial Services Commission on Tuesday.

With the designation, NH Investment & Securities, as an investment banking firm that has both short-term notes and IMA, will further advance its funding and asset management systems.

Based on operating experience in its short-term note business since 2018 and stable performance in its investment banking division, it plans to further strengthen competitiveness across investment banking, including corporate finance, structured finance and risk capital investment.

As financial authorities are guiding funds raised through IMAs to flow into corporate finance and support for innovative companies, NH Investment & Securities' role is also expected to expand.

IMA operators must invest a certain share of raised funds in risk capital, and the ratio will be increased in stages to 10 percent in 2026, 20 percent in 2027 and 25 percent by 2028.

Chief Executive Byung-woon Yoon (윤병운) of NH Investment & Securities said, "This designation as an IMA operator goes beyond a simple expansion of business, and I believe it is an important role in expanding productive finance within capital markets." He added, "Based on the group-wide capabilities we have built up, we will actively work to discover promising companies and expand risk capital investment to contribute to strengthening growth and vitality in capital markets."