KDB Daewoo Securities, the Leading Financial Investment Company of Korea

KDB Daewoo Securities, the Leading Financial Investment Company of Korea

KDB Daewoo Securities  is one of the affiliates of current KDB Financial Group (www.kdbgroup.com) which has been the leading financial investment company of Korea for over 40 years since its establishment in 1970.

It has taken the head not only in the field of major sales such as IB, asset management, brokerage,   sales and trading, but also in every aspect of sales infrastructure, including but not limited to research, IT, overseas network, manpower, and etc.

Particularly, it is constantly taking the lead in the field of IB business through successful performance of financing and IB consulting for internal and external blue-chip companies. The latest deals which the company conducted include IPOs (Initial Public Offerings) for a diversity of companies: Himart, the largest household appliance distributor; KT Skylife, the biggest satellite broadcasting station; and Kolon Plastics, the major chemical company. Aside from this, it has consolidated its position as the best financial investment company not only in the field of equity and debt related with paid-in capital increase, block sale, and Asset Backed Securities, but also in the area of merger and acquisition.

The company has made a lodgment in a couple of Muslim countries such as Indonesia and Malaysia, and also has extensive overseas networks in New York, London, Tokyo, Hong Kong, and Shanghai. Furthermore, it is also planning to establish another overseas affiliated company in Singapore which is geographically close to Middle East.

In the year 2007, Daewoo Securities took an equity stake in one of the local stock firms named E- trading Securities in 2007, and became the second largest shareholder of the company. It also combined its advanced technology and know-how to the local circumstances, and sooner or later e- trading Securities developed into the best on-line stock firm in Indonesia.

Having signed an exclusive MOU with one of the leading local stock companies named CIMB in 2008 to sustain constant investment and consulting alliance for both Islamic and local areas, Malaysia is preparing for the permission on the issuance and distribution of Islamic bond, which is expected to grow substantially in days to come.

Meanwhile, KDB Daewoo Securities is creating a synergy effect in various financial areas through collaboration with other affiliates such as the Korea Development Bank, KDB Asset Management, KDB Capital, and Korea Infrastructure Investment Asset Management, as KDB Financial Group officially launched in October, 2009.

More than all, the company is achieving substantial result in the field of investment banking through business partnership with the Korea Development Bank that has the domestic highest credit rating and extensive network both internally and externally. For instance, it executed a joint financing plan for numerous outstanding companies like Hanjin Shipping Co., Ltd. which were in dire need of improvement on their financial structures, and is currently in charge of consulting service for sale of world-class shipbuilders such as Daewoo Shipbuilding & Marine Engineering. For such a reason, it is making conspicuous accomplishments in a diversity of areas through the synergy with KDB.

Im, Kee-Young the representing director of KDB Daewoo Securities, participated in the Working Group on Exit Strategy of Financial Department of 'G20 Business Summit', which was held in November last year, on the strength of its advanced performance and standing in the business sector.

The company, which is leading the financial investment of Korea in every aspect on this wise, has the capacity to offer the optimal investment solution to potential overseas buyers and investors as the best business partner.

Korea's Degree of Interest in Islamic Finance and Its Reason & Progress on Introduction of Sukuk

The foreign capital of Korea is mostly concentrated in America and Europe, and is apt to be exposed to the effect of financial crisis in advanced countries caused by the latest budget deficits.

The Islamic economic bloc, which accounts for one fourth of world's population and 20% of Gross World Product (GWP), is judged to be a very attractive market in terms of diversification of foreign- currency loan market.

Particularly, the Islamic bond, the regional economy of which is quite solid under stable market situations, is the very investment product which has recently taken the limelight from myriad investors.

Where the total amount of Islamic bonds issued all over the world already reached US 52.4 bil., a new view is emerging that Korea is also obliged to take a proactive attitude, since other advanced countries, including but not limited to England, France, and Japan, are quite enthusiastic in bringing in more Islamic capital by amending some of their related laws.

Amid such situations Korea has also had discussion about the Islamic bond in a continued manner since the second half of 2008. As referred to earlier, there is an on-going review of the Islamic bond for diversification of foreign-currency loan market and exploitation of rich liquidity of oil money.

It is expected that the outlook for the international market is likely to be relatively auspicious, considering that even the government agencies are paying attention to the fact that more capitals are flowed into the Muslim world, and are planning to review a plan to establish cooperative relationship with the Muslim.

In the meantime, KDB Daewoo Securities is in the process of issuing ringgit bond of the Korea Development Bank in cooperation with CIMB, the investment bank of Malaysia, which has an advantage over Islamic finance. On the basis of these experiences, it expects to expand its domain not only to the conventional bond but also to the Sukuk bond.

Future Financial Strategy for Win-Win Agreement between Korea and Saudi Arabia

In the view of Islamic finance; one of the best long-term investors of Korea with advanced competitiveness in the manufacturing business, it is expected that the Islamic finance shall form an ideal partnership after all.

The Islamic finance is judged to basically prefer a long-term investment over 5 years, and to place more emphasis on the project feasibility than collateral, as an investor who directly injects funds into the projects not the mere loans.

Accordingly, it seems that the method of using PEF, which is based on the long-term partnership as well as the dividend for excess earning, might be very advantageous.

Varied forms of collaboration, in particular, might be feasible in the field of Shipbuilding Finance, which stands on the basis of spot transaction as well as project finance for large-scale investment projects such as nuclear power plant and social overhead capital.

Furthermore, it may play a role as a window for strategic foreign-currency procurement through potential stabilization of Korean financial market, as the Islamic countries in the Middle East have abundant foreign exchange reserve as well as low connectivity with the global stock markets and American/European economic blocs.

KDB Daewoo Securities' Plan to Expand into Islamic Market

Lately, Islamic capital is taking notice of fast-recovering Asia region as a new investment site, and the capital transaction between GCC nations and East Asian countries is estimated to grow substantially in years to come.

KDB Daewoo Securities has constantly conducted a diversity of sales businesses such as foreign currency bond issued by Korean companies and strategic purchase of stakes for sovereign wealth funds, banks, and asset management of major GCC nations such as UAE.

Especially, it is achieving the targeted results centrally for the Korean Equity Sales by constantly proceeding a series of analyst meetings with NDR, a Korean listed company, for sovereign wealth funds and institutional investors of the Muslim finance.

Now the company is in full charge of Middle Eastern market through the local subsidiary in London, and is reviewing a possibility of advancing to GCC nations in consideration of potential growth progress of the Islamic finance.

Investment Attractiveness of Korean Financial Market and Its Promising Investments for Oil-producing Countries (Oil Money)

Korean economy has an internationally competitive power in the field of cutting-edge technology and manufacturing business.

It has in particular displayed radical growth in some industries such as information technology and automobile manufacturing, on account of the environmental impacts of latest foreign variables as well as the improvement of self-regulated competitiveness.

Under these circumstances, it is estimated that it might be a good time for an investment, when the Korean stock market is under the adjustment with the world market being adjusted by global economic crisis.

As the best domestic IB house, KDB Daewoo Securities is implementing multiple deals for various stocks and bonds of blue-chip companies, and is setting unremitting efforts to provide the optimal investment opportunities for investors in this process.

As it provides investors with opportunities to purchase blue-chip stocks at a reasonable price through initial public offering, paid-in capital increase, and block sale, the company is ready to suggest a desirable investment method to the Islamic investors with the needs for such investment.