An Institution With 130 Million Won Average Salary, the 'Workplace Even God Doesn't Know,' Suddenly in the Spotlight

A Solid and Conservative Institution: Korea Securities Finance
A Public Financial Entity Now Under Investigation Over 'Butler' Scandal
Invested 5 Billion Won in Rental Car Firm Owned by Kim Yesung

During the investigation of the 'Butler Gate,' the name of Korea Securities Finance has surfaced, drawing attention to this relatively unfamiliar institution. This is because it was revealed that Korea Securities Finance invested 5 billion won in a rental car company whose major shareholder is Kim Yesung, known as the 'butler' of First Lady Kim Keonhee. The special prosecutor is now examining the flow of funds.

During the investigation of the 'Butler Gate,' the name of Korea Securities Finance appeared, drawing attention to this institution.

Korea Securities Finance is the only institution in the country responsible for holding and managing the deposits of securities firms and asset management companies. Under the Capital Markets Act, investor deposits must be separated from proprietary assets and entrusted to an external institution, and Korea Securities Finance serves as that external institution. It does more than simply hold these funds; it invests them in safe assets such as bonds to generate returns, which are then paid to securities firms in the form of interest.

Additionally, it acts as a buffer in the financial market by providing short-term loans to securities firms and purchasing repurchase agreements (RPs) to supply liquidity. Korea Securities Finance contributed to market stability during both the 2008 financial crisis and the COVID-19 pandemic.

This public financial institution is entrusted with the management and operation of client deposits from securities firms and asset management companies, and also serves as a channel for short-term loans. As of the end of March this year, its BIS capital adequacy ratio stood at 25.1%, significantly higher than the banking sector average of 15.7%. Its non-performing loans account for only 0.01%. Net profit has steadily increased for three consecutive years since 2022, reaching 377.7 billion won in 2024, and the average annual salary of its employees is about 129 million won.

Last year, the year-end dividend was 950 won per share, with a dividend yield of approximately 7.6% at the time of distribution. The largest shareholder is Korea Exchange, holding an 11.1% stake, while major financial institutions such as Woori Bank, Hana Bank, and NH Investment & Securities also participate as key shareholders.

The investment approach of this institution, which combines public interest and profitability, is generally considered conservative. Nevertheless, in 2023, it invested 5 billion won in the 'Oasis No. 3 Fund.' As this fund invested most of its capital in IMS Mobility, which was in a state of capital impairment, questions have been raised. The largest shareholder of IMS Mobility is Kim Yesung, known as the butler of First Lady Kim Keonhee.

It is considered unusual for an institution that typically takes a cautious approach to lending to make a large investment in a high-risk company. The special prosecutor is investigating whether this investment was a preferential deal based on connections with government officials. On July 17, former CEO Yoon Changho, who was the head of the institution at the time, was summoned by the special prosecutor for questioning.

The controversy continues as this institution, known for its stability and conservative nature to the extent that it is sometimes called the 'workplace even God doesn't know,' finds itself at the center of a political issue.