NH Investment & Securities to Raise Capital Through Paid-in Offering to Meet IMA License Requirements

Promoting a 650 Billion KRW Paid-in Capital Increase
Targeting the Largest Shareholder

NH Investment & Securities is pursuing a paid-in capital increase of 650 billion KRW to enter the Integrated Investment Account (IMA) business.

On July 31, NH Investment & Securities held a board meeting and resolved to carry out a paid-in capital increase of 650 billion KRW to promote the new IMA business. Through this capital increase, NH Investment & Securities will meet the 8 trillion KRW minimum equity capital requirement for IMA business operators as stipulated by the Capital Markets Act.

Since the announcement of the comprehensive financial investment business (general securities company) operational regulatory reform plan by the Financial Services Commission in April, NH Investment & Securities has been reviewing the business entry. Considering that the company must complete its license application by September to be reviewed under the current requirements, it decided to proceed with a third-party allocation paid-in capital increase targeting its largest shareholder, NongHyup Financial Group.

Since his inauguration, CEO Yoon Byungwoon has emphasized the importance of retail as a core business to drive NH Investment & Securities’ future growth to all executives and employees. With this capital increase, the company plans to secure new growth momentum in retail. The IMA is a highly competitive investment product in terms of deposit-taking, as it requires the general securities company to guarantee principal repayment and distribute investment returns to customers. It is designed to satisfy both customers seeking principal protection and those seeking asset growth.

In addition, as a leading securities company in the domestic capital market, NH Investment & Securities has experience handling various landmark deals and consistently maintains a top position in various capital market league tables. Based on its accumulated corporate finance (IB) capabilities, the company plans to invest customer funds brought in through the IMA into various corporate finance areas, including venture capital, to support corporate and real economic growth, with investment returns being returned to customers.

NH Investment & Securities holds the industry’s highest credit rating of AA+ (based on Korea Ratings and NICE) and has a stable governance structure as a securities company under a bank-affiliated financial holding group. This can serve as a significant advantage for investors in terms of principal repayment stability. The company is determined to present a competitive retail strategy through IMA products that combine both stability and profitability.

With this paid-in capital increase, NH Investment & Securities will meet the capital requirements for IMA licensing. The company plans to form a task force team (TFT) led by the CEO to ensure the license application is completed without delay within the third quarter.