KB Securities decided on a 1 trillion won rights offering. It plans to expand equity capital to boost competitiveness in investment banking and its note issuance business, and to lay the groundwork for future growth businesses such as the comprehensive investment account, or IMA.

KB Securities said on June 26 it decided on a 1 trillion won rights offering through a board resolution.

The rights offering is a strategic decision to support a shift and expansion of its business portfolio. KB Securities plans to expand its role in productive finance by supplying venture capital, improve profitability in capital markets and its note issuance business, and build a foundation for the IMA business.

KB Securities moved to secure additional capital after a 700 billion won capital increase early this year. The company plans to strengthen its ability to supply corporate growth funding in line with financial authorities' policy stance of revitalising capital markets and expanding productive finance, and to reinforce its footing as a mega investment bank.

In the securities industry, the size of equity capital and stable profit-generating capacity have recently emerged as key factors determining competitiveness. KB Securities plans to use the capital raised in the offering to strengthen its existing core businesses, including IB, bonds and asset management.

It will also secure venture capital supply capacity and a stable profit base based on its note issuance business. It will advance customer-focused business areas such as wealth management, retirement pensions and digital platforms, and also manage capital adequacy and financial soundness in parallel to prepare for greater market volatility.

It will also step up preparations to pursue the IMA business. IMA is a comprehensive investment service that can increase the supply of corporate growth funding and strengthen the circulation of funds in capital markets. KB Securities plans to use the capital increase as an opportunity to reorganise its internal preparation system.

Co-CEOs Jin-doo Kang (강진두) and Hong-gu Lee (이홍구) of KB Securities said, "This capital increase was 추진 to strengthen the fundamentals of existing businesses and secure a foundation for future growth businesses." They added, "We will continue to fulfil our role in productive finance and build our business portfolio."