NH Investment Securities, Moving Toward a Mega Investment Bank……IMA Market Competition Officially Begins

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NH Investment & Securities has been designated as a comprehensive financial investment company, officially entering the competition among mega investment banks. The Financial Services Commission approved NH Investment & Securities to obtain a license for Integrated Management Account (IMA) operations, with its own capital exceeding 8 trillion Korean won. This means NH Investment & Securities will have the opportunity to invest customer deposits in corporate finance and pursue high returns.

An IMA refers to an account where securities firms guarantee the principal to clients and invest related deposits in various financial products. Notably, NH Investment & Securities can raise up to 300% of its own capital through IMAs and financial instruments such as notes, indicating strong capital mobilization capabilities in areas like corporate finance. This could be a key step toward becoming a mega investment bank.

NH Investment & Securities joins Korea Investment & Securities and Mirae Asset Securities, which were previously selected as IMA operators, entering a new competitive phase. Korea Investment & Securities has gained market presence through successful fundraising, and Mirae Asset Securities continues to expand its business with high competitiveness. In this context, NH Investment & Securities plans to strengthen its market position through differentiation strategies.

Given that IMAs offer returns higher than bank deposits, industry experts predict that the “funds migration” from banks to securities firms will accelerate. NH Investment & Securities aims to expand its corporate and structured finance businesses, focusing on identifying potential companies and engaging in venture capital. This is expected to contribute to the growth and vitality of the capital markets.

Under this trend, NH Investment & Securities’ high credit rating and financial stability are likely to become key competitive advantages. How the IMA market will evolve and the outcomes of fund competition with banks remain areas to watch closely.

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