By Kim Jae-kyoung
The year 2010 was a milestone for Daewoo Securities as it successfully achieved two goals ― solidifying its leading position in the domestic market and preparing to become a global player.
In the 2010 fiscal year that began in April, the brokerage house posted operating profits of 208.9 billion won and a net profit of 152.3 billion won for the first six months, solidifying its dominant position here.
During the year, it boasted prowess in the areas of investment banking (IB), trading and wealth management, as well as in the retail sector, including the brokerage business. In particular, it strengthened its dominance in the retail market. The outstanding balance of the firm’s wealth management accounts has breached the 46 trillion won mark.
The brokerage house also outperformed its rivals in the investment banking sector. It has handled many large-scale initial public offerings (IPOs), including Tongyang Life Insurance, the first listing by a local insurer. In the first half of last year, the firm managed the capital increase of Hynix Semiconductor, the largest deal within that period.
The company has also set an example in establishing the advanced trading system. In August, the firm launched the nation’s largest trading center that integrates equity, derivatives and foreign exchange trading departments. The center, which can accommodate up to 200 traders, is equipped with various trading systems consummate with those of global IBs.
Daewoo Securities is also taking a lead in globalization drive of local financial firms by expanding its overseas presence in promising markets, including New York, London, Hong Kong, Beijing, Tokyo and Ho Chi Minh.
With a total of 126 domestic branches, the firm opened its first overseas branch in Tokyo in August, 1984, followed by London (1986) and Hong Kong (1988). Most recently, it opened its Beijing office in 2009 to capitalize on the world’s fastest-growing market. It is now pushing to open an outlet in Shanghai.
In particular, the company has mapped out a strategy to use Hong Kong as its base to make forays into Asian markets and become one of Asia’s leading players. To that end, the firm has upgraded its Hong Kong subsidiary to become its Asia-Pacific Regional Headquarters and increased its capital by $30 million in April. The securities company also introduced the matrix system for more effective communication and evaluation.
“With these combined efforts, the brokerage house has set the goal to strengthen its status as a leading player in Asia in equity and fixed-income sectors,” a company official said.
In addition, the firm successfully made inroads into Indonesia by increasing its stake in the Southeast Asian country’s e-Trading Securities to 38.35 percent and built a good relationship with the Indonesian company’s management. The company is expected to expand quickly in line with Indonesia’s economic growth.
Daewoo Securities CEO Im Key-young has spearheaded the globalization drive with his rich experience and knowhow in the securities industry. In November, he participated in G20 Business Summit and led a discussion among global business leaders regarding finance and an exit strategy in the post-crisis world.