IBK Securities to Use SMEs as Growth Engine
By Park Hyong-ki
Staff Reporter
IBK Securities said Tuesday that it will focus on providing investment banking services to small- and medium-sized companies, while its parent company Industrial Bank of Korea continues commercial lending.
Given the time needed to help smaller firms raise capital and grow, the brokerage said it will encourage retail investors to invest in such companies through one-stop asset management service.
``We will strive to offer differentiated investment services mainly to small and medium-size companies such as through private equity funds, principal investment or collateralized bond obligation,'' IBK Securities CEO Im Kee-young told a news conference.
``Our long-term goal is to help smaller companies become big companies.''
The brokerage will also develop a fund investing in smaller firms with growth potential for retail investors.
``Participation of retail investment is tantamount to growth of small companies. Thus, we are looking to develop a fund within the next year or so,'' Im said.
To better satisfy its 180,000 clients that are smaller firms, the company will set up as many as 20 branches near industrial complexes and small business offices by year's end. It has four branches in Seoul.
IBK Securities is targeting 80 branches ― both for retail and small business customers ― by 2010. Branches will not only provide capital services but also business consulting.
Over the long term, investment banking will account for 20 percent of business operations, capital trading 20 percent and asset management 60 percent.
``We will further increase the scale of asset management operations over the long-term,'' Im said.
The chief executive said his company aims to grow organically rather than through global advancement or mergers and acquisitions.
Im said IBK Securities will go global when its clients expand their operations globally. But for now, it will concentrate on providing services to Korean retail investors, institutional investors and small businesses.
``We can consider expanding abroad after we maintain stable operations at home, and perhaps after three to four years, we can begin offering services for foreign investors to invest in Korean small and medium-size firms,'' said Im.
IBK Securities has equity capital of 300 billion won, but Im said he hopes to raise that figure to one trillion to two trillion won within four years, then go public.