Natixis may delay opening securities branch in Seoul

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By Lee Kyung-min

Natixis, one of France's major financial services providers, is expected to delay its plan to open a securities branch in Seoul in the second half of 2019, industry sources said Monday.

“Natixis was scheduled to open its securities operation in the first half of this year. But the plan has been delayed to the latter half in the wake of its failed investment in Korea's derivatives,” an industry source close to the matter said on condition of anonymity.

The delay came after the company suffered losses of about 330 billion won ($300 million) stemming from its investment in equity-linked securities (ELS) here in late 2018.

“The return of the firm's investment depended largely upon the performance of the benchmark KOSPI with variables including market volatility. But the investment incurred a huge loss due to wild fluctuation of the benchmark index in the latter half of last year,” the source said.

The source added that the poor performance has affected an overseas business expansion plan pursued by the French company's headquarters in Paris, known for its expertise in securities and ELS brokerage.

Natixis' representative office in Seoul gave up its banking business license in May 2018 and has since been going through the necessary procedure to win a securities license.

In May 2018, Natixis appointed former Royal Bank of Scotland (RBS) Korea CEO Cho Su-young as chief of the envisioned securities branch, the source said.

According to the Financial Supervisory Service (FSS), the French entity filed for regulatory approval last Sept. 18, seeking to begin its securities operation here.

The prospect of license of operation here may also be influenced by a decision by financial authorities in France.