It is found that DS Investment and Securities turned to black in the first year when the major shareholder last year.
According to the financial industry on January 20, DS Investment and Securities recorded its operating profit of KRW 2.38 billion last year, turning from an operating loss of KRW 4 billion in 2018 to a surplus in a recent disclosure of ‘more than 30% change in operating profit or profit and loss structure’. Net income was KRW 2.14 billion won last year, turning from a deficit of KRW 4.32 billion in 2018 to a surplus.
DS Networks, a real estate developer, acquired Taurus Investment & Securities led by Chairman Son Bok-jo and changed the name to DS Investment and Securities.
Afterwards, the company strengthened its capabilities in the investment banking (IB) sector by recruiting CEO Shin Jung-ho, who served as the head of the IB division at Meritz Securities. It changed its focus from WM-centered to IB-centered business. In particular, it focused on real estate project financing (PF) to maximize synergy with DS Networks, its parent company. In order to expand the business, the company raised its capital from KRW 30 billion to KRW 100 billion by increasing capital twice.
An official from DS Investment and Securities said, “Business conditions improved as the largest shareholder changed and a capital increase was carried out after a new management joined the company”. He added, “significant portion of the profit in last year was generated from PF and IB areas”.
He also pointed out that “It is impossible to predict what will happen with the regulation on PF (project financing) of the financial authorities.” “However, since it is a regulation on large securities companies with equity capital of KRW 3 trillion or more, it may be an opportunity for small securities companies,” he said.
This year, the company plans to focus on strengthening its capabilities, such as raising capital through another capital increase and hiring excellent human resources in the IB sector.” “The timing has not been confirmed, but we are planning to raise capital once more this year, and we are recruiting manpower in key business areas such as IB and PF.” I hope it will be done,” he added.
News 1 / reported by Jeon Min