이 기사는 2019년 11월 20일 08:00 thebell 에 표출된 기사입니다.

South Korean securities industry struggled in the wake of the global financial crisis in 2008 and the industry had to roll up sleeves to make layoffs. Amid global economic chaos, Korea Investment & Securities decided to find new opportunities in Singapore, the backbone of Asian finance. While domestic competitors and global investment banks reduce their labor force, the securities firm made the contrarian move of establishing its office in Singapore.

Korea Investment & Securities' Singapore office has grown continuously over the past few years. The firm is the largest securities firm by cash equity among Korean securities firms that entered the Singapore market. The firm has retained the position for the sixth straight year. "[The office] has built networks by absorbing experts while global investment banks reduce their workforce. The firm decided to turn lemons into lemonade," said Alex Jun, Head of Singapore in Korea Investment & Securities Singapore.

Korea Investment & Securities' Singapore office is located in the One Raffles Place in the country's financial hub, downtown core. The securities firm succeeded in constructing a network with more than 50 institutional investors from Singapore, Hong Kong, Malaysia, and Australia at one of the tallest building in Asia. The Singapore office generates fee income by providing institutions with traditional cash equities business brokerage, fundamental research and meetings amongst companies.

"Our main clients are leading pension funds in Singapore, global investment banks and hedge funds. We maintain close relationships with them by providing research and deals on Korean industries and corporates," said Jun.

The cash equities businesses have shrank in global capital markets. Funds are flowing from cash equities into system trading. "A leader can make money no matter how depressed the industry is. If we maintain our number one position, which we have for several years, the Singapore office will be a foreign platform that is helpful to Korea Investment & Securities' profit model. Our mission going forward is to continuously develop new clients and business," explained Jun.

Singapore's investors view that the export-oriented Korean economy holds potential risks to be affected directly by the U.S.-China trade war. Domestically, strict regulations and unfavorable sentiment on entrepreneurs make Korean companies to be undervalued.

"The attractiveness of Korean manufacturing industry has been weakened over the last 10 years. However, the top two semiconductor companies, Samsung Electronics and SK Hynix, contents companies like Kakao and Naver, and biosimilars firms like Samsung Biologics and Celltrion are still enjoying popularity," said Jun.

The Singapore office also works in collaboration with its headquarters. The most important task is to secure foreign institutional investors when a domestic company seeks to list with a value of more than one trillion won. The Singapore office focuses on targeting investors in Singapore and Hong Kong who tend to prefer Korean companies. Korea Investment & Securities' Singapore office is in charge of local sales for initial public offering (IPO) deals that its headquarters accepted. Also, the office is responsible for all the works related to roadshows that are hosted by Korea Investment & Securities and held in Singapore.

"Singapore is the Asian finance hub where a large amount of money around the world is waiting. Korea Investment & Securities will become ASEAN's 'true friend' by cultivating partnerships in the longer term," said Jun.

(By reporter Yang Jung-woo)