'Woori Investment & Securities' Changing to POS Securities... Preparing New License

Korea POS Securities Announces Open Recruitment for Analysts
Preparing to Acquire New License... Aiming to Meet Requirements
Plans to Become a Comprehensive Securities Firm... "Targeting Approval in August"

The 'Woori Investment & Securities,' which disappeared into history 10 years ago, is making a comeback. Attention is focused on whether it can bring a fresh breeze to the securities industry, backed by Woori Financial Group, one of the four major financial holding companies.

According to the financial investment industry on the 17th, Korea POS Securities conducted two rounds of open recruitment for 'market and product research and analysis specialists (analysts)' in April and this month. A POS Securities official said, "One of the requirements for the new license is to have research and analysis specialists, so we newly hired them," adding, "We already meet all other personnel requirements and plan to advance as a comprehensive securities firm, so we may recruit additional personnel such as analysts and IT staff in the future."

Woori Financial Group has submitted an application for approval of the merger between Woori Comprehensive Finance and Korea POS Securities to the Financial Services Commission and is awaiting regulatory approval. The new name specified in the application is Woori Investment & Securities. The group's goal is to launch the merged securities company by August this year. After the merger, it plans to expand the range of investment products and grow into a comprehensive financial company. Currently, Korea POS Securities holds licenses for investment trading, investment brokerage, and trust business related to collective investment securities, while Woori Comprehensive Finance holds a comprehensive finance license. During the license expansion process, additional requirements must be met for each licensing category.

The securities industry is paying attention to Korea POS Securities' fresh start. POS Securities (formerly Fund Online Korea), established in 2013 to promote public funds, has recorded net losses for more than five consecutive years. In 2023, it posted a net loss of 5.9 billion KRW, with losses of 7.2 billion KRW in 2022, 7.5 billion KRW in 2021, 8.5 billion KRW in 2020, and 6.9 billion KRW in 2019. On April 24 this year, it held an extraordinary general meeting and resolved a capital reduction (a free capital decrease) by reducing the par value to improve its financial structure through deficit compensation.

The return of the name 'Woori Investment & Securities' carries deep significance. Woori Investment & Securities was merged into NH Nonghyup Securities, affiliated with NongHyup Financial Group, in 2014 and was reborn as NH Investment & Securities. A senior official from a major securities firm recalled, "In the past, Woori Investment & Securities had a much more advanced system than the merged company, NongHyup Securities," adding, "After the merger, the systems of NongHyup Financial Group's financial affiliates were all changed to follow it."

The new home of Woori Investment & Securities is likely to be in the Yeouido area. Previously, Woori Comprehensive Finance informed customers that it would relocate to the TP Tower (Teachers' Pension Building) near Yeouido Station. The Seoul Sales Department is known to occupy the 20th floor, while support staff share the 21st and 22nd floors. It also seems highly likely that employees who become part of Woori Investment & Securities after the merger will remain on-site. Currently, Korea POS Securities leases part of the Hi Investment & Securities Building in Yeouido.

A product strategy official from a commercial bank said, "Since it is backed by one of the four major financial holding companies, many personnel from Yeouido are expected to support it," adding, "Because capital expansion is not difficult, advancing to a comprehensive financial company does not seem very challenging." Another securities firm official speculated, "They seem likely to hire a large number of IT personnel, and there may also be plans to utilize investment banker (IB) personnel from Woori Bank."