Woori Investment to Beef Up China’s Research Center
By Yoon Ja-young
Staff Reporter
Most Korean securities companies are still in the infant stage when it comes to globalization but Woori Investment & Securities is taking the lead in extending their business abroad thanks to strategic forays into overseas markets.
Woori, one of the top three players in the local securities industry, has actively sought markets overseas under a mid-to-long term vision of becoming a leading investment bank in Asia.
It has been setting up infrastructure to complete global networks, expanding regional retail and wholesale outlets.
While most other local securities companies are engaged in M&A efforts in Southeast Asia or have just begun setting up branches and offices, Woori has completed such efforts. Now it is focused on stabilizing income sources from overseas networks it has already established.
For example, Woori has already set up an HTS system in China and Hong Kong, and has already shifted its focus to stabilizing income sources there.
It is also making efforts in on- and off-line brokerage in Southeast Asia, to aggressively advance into the market and promote the brand.
Its ultimate aim is to make each regional base competitive enough to survive on its own.
Currently, Woori has subsidiaries in New York, London, and Hong Kong and an IB Center in Singapore, the first to be set up by a Korean securities company there. It cost Woori $50 million to set up the business and advance into the IB sector in Southeast Asia and compete with global players.
Woori also has offices in Shanghai, Ho Chi Minh, Kuala Lumpur, and Jakarta.
China is the market where Woori is paying special attention. It opened a research center in Beijing in March 2008, as a part of efforts to strengthen global research. The center is currently providing in-depth analyst reports on Chinese economy as well as market and stock items to customers in Korea and overseas, and supporting Woori's operation and direct investment in China. It got Qualified Foreign Institutional Investor (QFII) status from Chinese regulator in May last year.
In Indonesia, Woori acquired 60 percent stake of PT Clemont Securities Indonesia in October 2008, thus advancing into Indonesian financial market with low cost and less risk. It plans to expand income base mainly through IB and brokerage there.
In Vietnam, it acquired 49 percent stake in Chung khoan Bien Viet in February 2009. Woori has been running an office in Ho Chi Minh since November 2007 looking for business opportunities and examining the market there. The Vietnamese business is currently closely working with Singapore IB center and Seoul headquarters.
Woori reached India as well, where few Korean securities companies pay attention. It signed an MOU with Aditya Birla Financial Services, a subsidiary of Aditya Birla, in January, agreeing to set up and sell $500 million India investment fund.
The two will be cooperating in private equity fund (PEF), asset management, and brokerage in India, and expand cooperation to IB and real estate project financing for the longer term. Woori expects joint research efforts to be of mutual benefit.
Woori also set up Middle East task force last year, knocking on the oil countries market from early on. It signed an MOU with Qatar Islamic Bank for cooperation in IB and investment.
The aggressive advancement into market overseas, of course, is based on the success in the local market. Woori has aimed at providing total financial solution, satisfying financial needs of customers and enhancing value of the market. It means more than simply providing products and services in brokerage, wealth management, trading or investment banking.
Woori plans to focus on brokerage and wealth management to secure leading position in the sector, as well as expanding market share in IB and trading. Thorough risk management, of course, is essential part of the Woori strategy which emphasizes stabilizing profitability.