iM Securities Completes Comprehensive Restructuring... "Lays Foundation for Profit Turnaround"

iM Securities announced on the 2nd that it has implemented high-intensity management efficiency measures, including consolidating half of its branches and conducting voluntary retirement.

At the end of last year, iM Securities carried out a strong restructuring by consolidating 21 branches into 11 by December this year. Judging that the WM business, which is rapidly encroaching on the market centered on large firms due to excessive branches mainly in the Yeongnam region, lower profitability, and managed assets compared to competitors, could fall behind, the company implemented branch consolidation along with workforce optimization.

Along with branch consolidation, voluntary retirement was conducted to improve the inverted pyramid workforce structure and the issues of high costs and low performance, and to strengthen the virtuous cycle and dynamism of the organization. In October, 34 employees applied for the first round of voluntary retirement, and an additional 19 applied in November, totaling 53 applicants. Among them, the retail division was able to reduce selling and administrative expenses by about 20% due to workforce reduction.

This is not simply a reduction of sales channels and personnel but aims to transform the retail division, which has been chronically unprofitable, into a profitable and sustainable revenue model by enhancing sales competitiveness through dynamic branch implementation and changes in working methods.

iM Securities plans to convert consolidated branches into mega-center models by region, operating joint sales teams composed of 4 to 5 asset experts at each mega-center to provide comprehensive asset management services to customers and employ various marketing strategies. The company also plans to actively expand loan brokerage and mediation services, offering diverse services beyond limited financial products to secure retail competitiveness capable of providing one-stop financial solutions.

Through slimming down branches and personnel, improving working methods and systems, and pursuing management efficiency, iM Securities aims to turn the chronically deficit retail division into a profitable structure by 2025 through strategic branch operations.

Alongside the retail division, the company is also thoroughly managing the real estate project financing (PF) non-performing loan issue, the biggest obstacle within the company, by strict site management and sufficient provisioning for bad debts to ensure normalization.

Under the basic direction of responsible management of the real estate sector and minimizing losses, the company reorganized the organization focusing on excellent sales personnel and essential management staff, strengthened post-management organizations, and worked on site restructuring and risk management. As a result, the PF loan balance was reduced by about 36%, from 1.23 trillion KRW at the end of 2022 to 770 billion KRW as of the end of October this year. In line with financial authorities' guidelines, 243.5 billion KRW in bad debt provisions will be accumulated by the third quarter of 2024, bringing the total provisions accumulated over the past three years to 500 billion KRW, alleviating the burden of PF non-performing loans.

iM Securities is evaluated to have established a stable foundation capable of turning profitable in 2025 through these management normalization efforts.

President Sung Mu-yong expressed his ambition, saying, “As a result of all employees sharing the pain for survival and striving to strengthen competitiveness throughout this year, we will achieve an operating profit of over 100 billion KRW in 2025 and be reborn as a company that can generate sustainable and stable profits.”