"Countdown to Entering Mega IB... Will Establish a Steady Growth Foundation"

Interview with Park Jihwan, Head of Hana Bank CIB Group and Hana Financial Investment IB1 Group
Achieving 500 Billion KRW Operating Profit in IB Sector This Year Expected
Untact Overseas Investment and Record-High IPO Sponsorship Amid COVID-19
Strengthening Role as Solution Provider Linked with Bank

Jihwan Park, Head of IB1 Group at Hana Financial Investment (Vice President)

[Asia Economy Reporters Jeongsoo Lim, Soyeon Park] Park Jihwan, Vice President of Hana Bank CIB Group (Investment Banking Group) and Head of Hana Financial Investment IB1 Group (Vice President), who is in charge of the investment banking (IB) business of Hana Financial Investment, which has become a giant with equity capital of 4.5 trillion won, recently mentioned the proverb "Sudo Seonbu (水到船浮)" meaning "When the water rises, the boat naturally floats" in an interview with Asia Economy. The well-built boat represents 'IB capabilities,' and the rising water symbolizes 'strengthened capital.' Park said, "Since our capital has been timely strengthened, my role going forward is to evenly grow each IB business sector to float the boat."

Despite increased market uncertainty due to COVID-19 last year, Hana Financial Investment boldly executed a capital increase. Securing capital of 4.5 trillion won, it met the equity capital requirements as a mega IB capable of continuously handling high-quality big deals. In particular, by proactively investing in COVID-19 beneficiary businesses such as logistics centers, it recorded an operating profit of 463.9 billion won last year, ranking among the 'Top 3' in the IB industry. Hana Financial Investment expects to easily achieve an operating profit of 500 billion won this year as well.

Park said, "Hana Financial Investment has continued active domestic and overseas investments despite the prolonged COVID-19 situation," adding, "Although overseas business trips and due diligence were challenging, we continued untact investments using drones, action cams, Zoom, and other tools." He cited the investment in a U.S. biomass power plant last year as a representative untact investment case. With overseas travel restricted, the deal was successfully completed using drones and video due diligence. The investment in Irish communication towers was also completed untact by connecting with advisory institutions conducting precise technical due diligence via video calls, as hundreds of assets were scattered across Ireland, making on-site inspections impossible.

This year, Hana Financial Investment will introduce promising companies to the market by leading the largest-ever initial public offerings (IPOs). It is managing the listings of 12 companies, including the business data specialist 'Cocoon.' Last year, it participated in the acquisition group of SK Biopharm and led the IPO of NeoImmuneTech, considered a major player. The IPOs of Cheonbo, Webcash, Microdigital, and Green Cross Wellbeing, which Hana Financial Investment led two years ago, all succeeded in the public offering process. Park emphasized, "We plan to build a track record of successful IPOs for high-quality companies and devote much time to discovering companies in new technology sectors."

Hana Financial Investment plans to maximize the advantages of a bank-affiliated IB to serve as a provider of customized corporate finance solutions. Park explained, "The role required of IBs recently is increasingly emphasized as a 'solution provider' offering customized solutions rather than simple fundraising," adding, "We plan to fully utilize the dual role as a bank CIB group to expand handling of high-quality assets and connect with the entire financial group, including retail."

He said, "This year, while aiming to solidify our position as a mega IB, we will also explore various opportunities in real estate and infrastructure," adding, "We plan to continuously secure investment opportunities in high-quality assets and proactively invest in emerging trends such as ESG (Environmental, Social, and Governance) and K-New Deal-related sectors to diversify revenue channels." He further added, "We will expand investments in long-term growth industries with the future in mind, not just pursuing immediate profitability."