The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Actor Song Joong-ki still hungry for new movie roles

  • 3

    Korea has world's highest senior poverty rate: data

  • 5

    Chuseok exodus begins ahead of extended 6-day holiday

  • 7

    Seoul Welcome Week to return for first time since pandemic

  • 9

    Korean tennis player Kwon Soon-woo embroiled in controversy after 2nd-round upset

  • 11

    INTERVIEWWellington mayor's love for Korean culture spurs collaboration

  • 13

    Rwandan artists bring diversity to Seoul's art scene

  • 15

    INTERVIEWONEUS returns as 'mermaid prince'

  • 17

    Court rejects arrest warrant for opposition leader Lee over corruption charges

  • 19

    BOK warns of worsening household debt situation

  • 2

    S. Korea flexes military might in rare parade with US in central Seoul

  • 4

    Gov't to boost Korean language education for multiethnic students

  • 6

    Guide to Chuseok celebrations across Korea

  • 8

    Hyundai Steel decides to form steel pipe unit

  • 10

    S. Korea-US alliance will end NK regime in event of nuclear weapons use, Yoon says

  • 12

    Anti-leaflet law ruled unconstitutional

  • 14

    Late Samsung chairman's love of animals helps change Korea's pet culture

  • 16

    For closer business ties between Korea, Vietnam

  • 18

    Over 100 money changers face suspensions, fines, criminal charges

  • 20

    Opposition leader Lee attends arrest warrant hearing at Seoul court

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Thu, September 28, 2023 | 20:49
Companies
Korea Investment slammed for getting 'favor' in KakaoBank IPO
Posted : 2021-07-22 16:55
Updated : 2021-07-22 19:37
Anna J. Park
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
Korea Investment & Securities headquarters in Seoul / Courtesy of Korea Investment & Securities
Korea Investment & Securities headquarters in Seoul / Courtesy of Korea Investment & Securities

Local brokerage criticized over 'preferential treatment'

By Anna J. Park

Ahead of the planned IPO of KakaoBank, Korea Investment & Securities is receiving criticism from its local peers, as the company has secured the underwriting of a significant proportion of the internet-only bank's stocks compared to co-underwriters.

The brokerage company is one of three underwriting firms for Kakao Bank's IPO, along with Hana Financial Investment and Hyundai Motor Securities. However, Korea Investment's allotment of underwriting stocks ― 12.4 million shares ― is more than six times higher than that of Hana Financial Investment and nine times higher than the amount claimed by Hyundai Motor Securities.

KB Securities and Credit Suisse each underwrite 18 million shares ― the highest amount ― of the mobile bank's offering stocks, but that's because the two firms are the main underwriters of the bank's IPO process and they have handled much of the complicated work, including calculating the corporate value of the bank, unlike Korea Investment, which is merely one of the three co-managers of the process. Market insiders say Korea Investment's taking over of around 19 percent of the offering stocks in the IPO is unusual for IPO underwriting.

As Korea Investment gets to underwrite 19 percent of the offered stocks, the brokerage company is expected to garner massive commission fees six to nine times higher than its co-underwriters during the upcoming institutional and retail stock allotment process.

Internet bank's IPO hastens banking groups' dividend payment
Internet bank's IPO hastens banking groups' dividend payment
2021-07-22 16:55  |  Companies

Market watchers speculate that the main reason behind why Korea Investment could secure the exceptionally large amount of Kakao Bank's stocks as an underwriter is the "special relationship" the brokerage company has with the mobile bank.

Korea Investment Holdings ― the parent company of Korea Investment & Securities ― and Korea Value Asset Management, an asset manager unit of the financial group, collectively hold 31.61 percent of KakaoBank's stocks, as Korea Investment Holdings owns 4.64 percent and Korea Value Asset Management has 26.97 percent. The aggregated amount held by the Korea Investment group ― 31.61 percent ― follows only Kakao, the parent company and largest shareholder of KakaoBank, holding a 31.62 percent stake.

Korea Investment's preferential treatment in the IPO underwriting process is somewhat similar to the favorable treatment Samsung Securities enjoyed during Samsung SDS's IPO process back in 2014. Samsung Securities secured an allotment of 18.5 percent of Samsung SDS's share offering, which is exceptionally higher than other co-underwriters which secured only 1.5 percent of the stocks.

Regarding such criticism, Korea Investment said it had no comment on the matter.

Before Kakao Bank's official KOSPI debut slated for Aug. 5, over 1,800 institutional investors from both within and outside the country feverishly participated in the allotment demand survey process. Retail investors' allotment process will take place next Monday and Tuesday, as the competition rate is expected to set a new record high.



Emailannajpark@koreatimes.co.kr Article ListMore articles by this reporter
 
miguel
wooribank
LG
Top 10 Stories
1Chuseok exodus begins ahead of extended 6-day holiday Chuseok exodus begins ahead of extended 6-day holiday
2Guide to Chuseok celebrations across KoreaGuide to Chuseok celebrations across Korea
3Korea sees record-low births in July Korea sees record-low births in July
4Political battle intensifies after court rejects Lee's arrest warrant Political battle intensifies after court rejects Lee's arrest warrant
5Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District Hyundai E&C to build upmarket apartment complex in Seoul's Gwanak District
6DMZ Open Int'l Music Festival to be held in Goyang in November DMZ Open Int'l Music Festival to be held in Goyang in November
7Lotte focuses on health care, mobility to spur growth Lotte focuses on health care, mobility to spur growth
8Two Koreas trade barbs over nuclear war Two Koreas trade barbs over nuclear war
9Defense ministry launches project to find families of unidentified fallen Korean War soldiers Defense ministry launches project to find families of unidentified fallen Korean War soldiers
10Korea on track to prove esports prowess at Asian Games Korea on track to prove esports prowess at Asian Games
Top 5 Entertainment News
1[INTERVIEW] With '30 Days,' Kang Ha-neul finds new level of comfort in acting INTERVIEWWith '30 Days,' Kang Ha-neul finds new level of comfort in acting
2Rwandan artists bring diversity to Seoul's art scene Rwandan artists bring diversity to Seoul's art scene
3[INTERVIEW] ONEUS returns as 'mermaid prince' INTERVIEWONEUS returns as 'mermaid prince'
4Kep1er unveils 'Magic Hour' with fresh perspective on love Kep1er unveils 'Magic Hour' with fresh perspective on love
5K-pop group Kingdom recalls album cover resembling Quran K-pop group Kingdom recalls album cover resembling Quran
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group