As Korea’s financial authorities speed up the introduction of the Investment Management Account (IMA) System, Korea Investment & Securities (KIS) is emerging as a potential candidate to start the IMA System.
The IMA System is a key challenge for Korea’s financial companies to grow into mega investment banks (IBs), according to financial market observers.
The IMA System seeks returns by investing customer deposits in corporate financial assets.
It is expected to be a stepping stone for Korean financial firms to become global IBs.
The Korean government plans to receive applications for the IMA business in the third quarter of 2025 and complete the designation by the end of the year.
Those in the Korean financial industry are expecting the first IMA business company to be designated by 2025.
Among current IMA applicants that have met the requirement of eight trillion won in equity capital, many financial market experts consider KIS the frontrunner, as KIS is the largest issuer of commercial papers and strong in corporate finance in the Korean financial market.
Since receiving Korea’s first business license for commercial papers in 2017, KIS has steadily expanded its operations.
As of the end of March, the company had 17.6 trillion won in outstanding commercial papers, more than double that of its competitors.
Its deal sourcing capabilities and corporate finance investment experience are considered to be among the best in the financial industry.
As a well-established IB powerhouse, KIS has a strong understanding of the entire investment process and the ability to do the IMA business.
Another strength of KIS is its organic collaboration system with its parent company, Korea Investment Finance Holdings, and its affiliates in the securities, asset management, venture capital, capital, savings and PEF managers.
For example, it provides venture investments and loans to early-stage startups, equity investments and issuance market-linked financing during their growth periods, and M&A, securitization, and structured finance to companies that have entered stability periods, providing all-round customized financial solutions tailored to the growth cycle of companies.
In the personal finance sector, KIS boasts the largest retail financial product offering in the industry.
It has the largest balance of financial products for individual customers.
Its experience in proactively supplying new investment products such as commercial papers, profit differential products, and collateralized loan obligations (CLOs) is expected to play an important role in the establishment of the IMA market and the revitalization of the system.
In addition, as IMAs are structured with principal payment obligations on customer assets, an IMA company has financial strength and high profitability.
As of 2024, KIA has demonstrated its financial strength at the highest level in the securities industry, with annual operating income and net income both exceeding 1 trillion won and equity capital of 9.3 trillion won.
“In terms of operational capabilities and financial indicators, it will be a strength compared to its competitors in that KIS has secured the foundation to stably manage IMA investment assets and faithfully meet demand for principal preservation,” said a financial investment industry insider.
Korea Investment & Securities (KIS) is conducting the “WE:walk Campaign” to donate money, matching the steps of employees to reduce greenhouse gas emissions until May 30.
We:walk Campaign to Reduce Greenhouse Gas Emissions
KIS announced on May 16 that it will launch the WE:walk Campaign to donate money, matching the steps of employees to reduce greenhouse gas emissions until May 30.
If the number of steps taken by employees reaches the target of 100 million, the company will donate money to cut greenhouse gas emissions.
The campaign is designed to encourage employees to voluntarily participate in improving their health and protecting the environment.
Walking instead of using internal combustion engine vehicles is expected to slash carbon emissions by approximately 155 tons per 100 million steps.
The donations collected this year will be utilized to plant trees and plants that are effective in absorbing greenhouse gases.
“We hope that this campaign will serve as an opportunity for employees to understand the importance of protecting the environment through their everyday practices,” said Kim Sung-hwan, president of KIS.
“KIS will continue to fulfill our corporate responsibilities through various social contribution activities for local communities.”
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