Tong Yang on globalization track

By Kim Tae-gyu

Tong Yang Securities, Korea’s largest brokerage in terms of number of branches, looks to duplicate its success here on the international scene.

Toward that end, the Seoul-based outfit has opened offices in Hong Kong, New York, Tokyo and Ho Chi Minh City as well as taking over a U.S.-based financial firm.

``We started advancing into global markets through establishing our New York office in 2006. Our Hong Kong branch began operating last year to give us a foothold in Asian markets,’’ a Tong Yang spokesman said.

``As the hub of the Asian initiative, the Hong Kong outfit chalked up notable results by opening Cambodia’s first securities firm last year. The new brokerage already signed some deals in the country.’’

Tong Yang also snapped up Esae Capital Partners, a boutique merchant bank based in New York, earlier this year so as to expand the former’s investment banking and capital markets footing in the United States.

Yet, its immediate targets are emerging countries in Southeast Asia such as Vietnam and Cambodia where the company has made its presence felt.

``We have raised and run a $200 million privatization fund in Vietnam and assumed a cross-border merger and acquisition (M&A) deal involving a Vietnamese stainless steel maker in 2009,’’ the spokesman said.

``In Phnom Penh, we have secured the status of an exclusive consultancy to public corporations. Under a financial advisory agreement with the Cambodian government, we will help the listing of the two public firms in July.’'

The two are Phnom Penh Water Supply and Telecom Cambodia.

Tong Yang’s global strategy has been supported by its Chief Executive Officer You Joon-ryeol, who reiterated that a substantial part of the firm’s future cash stream will come from international sources.

``Over t he mid- to long-term, we strive to become a financial intermediary, which will broker the supply and demand for funds between advanced economies and emerging states in Asia,’’ You said.

``It will help achieve our goal to grow into a genuine global investment bank that will rack up 30~50 percent of its operating profits from global businesses.’’

Tong Yang, whose history stretches back to 1962, maintains 163 branches in Korea and has remained in the pole position in such segments as asset management and cash management accounts.