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Leader of NH Investment & Securities to focus on regaining market trust

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By Lee Min-hyung
  • Published KST
  • Updated KST

NH Investment & Securities CEO Jeong Young-chae raises his glasses during a National Assembly audit in Seoul, on Oct. 20, 2021. Joint Press Corps-Yonhap

By Lee Min-hyung

NH Investment & Securities CEO Jeong Young-chae will focus on regaining the market's trust during his extended two-year tenure.

Jeong took office as the leader of the securities firm in 2018 and will lead the company until March 2024 after receiving approval on his term extension during a regular shareholders' meeting held recently.

He is tasked with enhancing its corporate image tarnished by its involvement in sales of scandal-ridden Optimus Asset Management funds.

Despite the controversy, the company took swift measures last year by deciding to provide full compensation to its customers who fell victim to the mis-selling of the troubled fund products.

He was acquitted late last year on charges of fraud and breach of trust, which helped him extend his tenure once again.

But Jeong still faces the crucial task of winning back the trust of investors during the next two years. The market pays particular attention to how the brokerage house will be able to maintain stable growth this year again after achieving a record operating profit of 1.31 trillion won last year, surpassing the 1 trillion won mark for the first time in its history.

The global liquidity and super low interest rates helped drive the benchmark KOSPI's outstanding growth last year, but this is unexpected to last this year with the U.S. Fed and the Bank of Korea hinting aggressive rate hikes throughout 2022 to tame inflation.

Data also backed up the possibility that local securities firms may not be able to achieve earnings growth that matches last year's performance. According to data from the Financial Supervisory Service, Korea's securities companies chalked up 1.3 trillion won in net profit during the fourth quarter of 2021, down 48 percent from the previous quarter, on weakening investors' sentiment here and aboard.