CEOs Launching Securities Unit

By Park Hyong-ki

Staff Reporter

Experienced in other fields yet new in the securities market, the familiar faces are in the spotlight again as Korea deregulates the capital market.

Kwon Sung-moon, chairman of KTBnetwork, an investment firm, is preparing to establish a brokerage house by separating the company into two operations _ one that focuses on corporate restructuring and venture capital; and the other, a securities company.

Kwon was well known during the venture capital boom in the late 1990s. The 47-year-old made a fortune then by investing in tech-venture shares, but soon faced a struggle in the wake of the tech bubble burst in 2000. Kwon once tried to acquire an online brokerage Kiwoom Securities through KTBnetwork, but regulators did not approve of it.

However, after the ups and downs of the early days, the company he runs is looking to start anew under the act, set for implementation next year, which will re-ignite an old rivalry with Park Hyun-joo, chairman of Mirae Asset Group. Both competed fiercely during the venture boom.

Yun Yong-ro, CEO of Industrial Bank of Korea (IBK), is another figure seeking to ride the Capital Market Integration Act bandwagon. He had served as vice chairman of the Financial Supervisory Commission (FSC) and chairman of Securities & Futures Commission. He had been one of the FSC's chief coordinators promoting deregulation in the startup of securities companies as a means to offset the increasing value of existing firms through mergers and acquisitions.

IBK said it applied for a license last month with the regulatory body to launch its new company, tentatively named IBK Investment & Securities. ``The firm will mainly serve small- and medium-sized enterprises on share offerings and bond issuances as part of efforts to help them raise capital,'' said Yun. The state-invested IBK, which faces privatization, is also moving to transform itself into a holding company.

Sohn Bok-jo, former Daewoo Securities CEO who is credited with raising the firm in the aftermath of the Asian financial crisis, is preparing for a comeback in the securities industry.

He said he will set up a 30 billion won brokerage house, ``Toros Securities,'' focusing on providing asset management services. ``I will soon apply for a license.''

Sohn propelled Daewoo to become one of the leading brokerage firms. Like IBK, the company under the wing of the state-run Korea Development Bank will be privatized.

phk@koreatimes.co.kr