[Asia Economy Reporter Ji Yeon-jin] Korea Investment & Securities has actively targeted the Vietnamese market. While solidifying its position in brokerage and derivatives markets, it has also expanded its corporate finance (IB) business to include initial public offerings (IPO) and mergers and acquisitions (M&A) for Korean and Vietnamese companies.
According to the financial investment industry on the 1st, Korea Investment & Securities signed a business agreement related to exchange-traded funds (ETF) with Dragon Capital Asset Management, Vietnam's largest asset management company, on the 6th of last month. Korea Investment & Securities President Jeong Il-moon personally attended the signing ceremony. President Jeong sought new business opportunities by meeting with major companies and institutions locally in Vietnam.
Korea Investment & Securities became the first foreign securities firm to obtain qualifications as an ETF authorized participant (AP) and liquidity provider (LP), thereby securing a leading position in the local ETF-related market. It is also expanding its influence by building the industry's first platform for overseas futures brokerage targeting Korean institutions. Additionally, by supplying various investment products, it is expanding its asset management business area, steadily increasing new accounts and market share.
It is also solidifying its leading position in the Vietnamese covered warrant (CW) market. Since KIS Vietnam entered the CW market in 2019, it has issued 136 CWs through last year. This year, it launched 42 new CWs by June. CWs correspond to equity-linked warrants (ELW) products in Korea. Since the Vietnamese authorities introduced the CW system in 2019, KIS Vietnam has held the number one market share in the CW market.
In the IB sector, it is also building its presence. In July last year, it acted as lead underwriter for the first-ever exchangeable bond (EB) issued locally, a 13 billion KRW EB for An Phat Holdings, Southeast Asia's largest plastic products manufacturing group. In March this year, it also led the issuance of a 22.5 billion KRW bond for An Phat Holdings. Additionally, in May, it handled the issuance of corporate bonds worth 300 billion VND (approximately 15 billion KRW) for the Vietnamese logistics company ASG Corporation, and in June, it signed a business agreement to provide funding solutions as ASG's IB (corporate finance) partner.
Korea Investment & Securities took its first step into the Vietnamese market by establishing a local corporation in 2010. Since then, it has secured various revenue sources such as brokerage, IB, and derivatives operations, building its position as a comprehensive securities firm in Vietnam. Its performance has also steadily improved. It recorded a net profit after tax of 2.37 trillion VND (approximately 1.2 billion KRW) in the first half of the year, a 217% increase compared to the same period last year. As of the end of June, total assets stood at 9.287 trillion VND (approximately 481 billion KRW), up 47% this year.
KIS Vietnam plans to strengthen its position as a comprehensive securities firm by enhancing capabilities in new businesses. To this end, it is reinforcing its local IB network and focusing all efforts on corporate sales targeting Korean companies through collaboration (co-work) with the headquarters.
During his visit to Vietnam in June, President Jeong Il-moon agreed to strengthen cooperation for corporate finance support and capital market ecosystem development with the management of Vingroup and Hoa Phat Group, ranked 2nd and 6th in local market capitalization, respectively. President Jeong said, “The Vietnamese financial market is rapidly developing and still holds high growth potential. We will maintain long-term cooperative relationships with local companies and institutions and contribute to the development of both societies.”
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