[Featured Stock] Daesin Information & Communication Builds Toss Bank IT Center... Secures 'Ammunition' for Launch of 3rd Internet-Only Bank

[Asia Economy Reporter Hyungsoo Park] Daishin Information & Communication is showing strength. The news that Viva Republica, the operator of Toss, which is about to launch the third internet-only bank Toss Bank, has raised about 500 billion KRW in investment seems to have influenced the stock price.

At 11:25 a.m. on the 1st, Daishin Information & Communication was trading at 2,205 KRW, up 2.32% from the previous day.

The previous day, a media outlet reported that Toss recently selected Bank of America (BoA) Merrill Lynch as the lead underwriter and completed recruiting investors for a paid-in capital increase worth about 500 billion KRW. Toss's corporate value was evaluated at over 7 trillion KRW. Success in the paid-in capital increase process led to an increase in the scale of the capital raise.

Toss is expected to invest the secured funds into subsidiaries such as Toss Bank, which will enter the mid-interest loan market, and Toss Securities, which has launched aggressive marketing. Toss Bank, which is expected to receive final approval from the Financial Services Commission as early as this month, announced that it will increase the proportion of credit loans to mid- and low-credit borrowers to 44% by 2023. Compared to existing internet banks like Kakao Bank and K Bank, a considerable amount of funds is required to increase the proportion of mid-interest loans.

Daishin Information & Communication stated through the shareholders' meeting notice that it has made efforts to retain existing customers and secure key clients in ICT infrastructure construction projects, information system maintenance projects, and information system construction and development projects. It introduced that it has won many construction projects and attracted new customers such as the Navy Headquarters information system integrated maintenance project and the Toss Bank IT center construction project.

Daishin Information & Communication is demonstrating excellent project execution capabilities to customers by simultaneously carrying out numerous large-scale ICT construction projects and integrated information system maintenance projects. It plans to accurately understand customer needs, further strengthen cooperation among business operators, and provide high-quality services.

Due to an increase in orders for public sector ICT infrastructure construction and maintenance service projects, Daishin Information & Communication recorded total sales of 193.7 billion KRW, a 10% increase compared to the previous year. Operating profit reached 2.3 billion KRW, an 11% increase from the previous year, by thoroughly managing project costs and strengthening execution capabilities.