JAKARTA (TheInsiderStories) – PT Korea Investment & Securities (KIS) Indonesia, the principal subsidiary of Korea Investment and Securities Co., Ltd. (KIS) also Korea Investment Holdings (KIH) officially announced its launch and readiness to serve the Indonesian market.
Ryu Sang-Ho, President and CEO of KIS in a press statement released on Monday (09/07) said, with the understanding of the vagaries penetrate growing markets, KIS Indonesia is expecting will follow the same trail and prove of its holding experience became the top securities firms in Asia.
Previously KIS has acquired 75 percent of KIS Indonesia (ex PT Danpac Securities) with the final equity recorded a number of Rp181.2 trillion (as of the end of May 2018), with a cash injection of US$33.5 million for new shares offered in the form of third-party ownership. Total equity of KIS Indonesia grew an average of 7x, jump into the league table (based on the amount of equity) to 11th among 106 securities firms in the country.
A leading brokerage in South Korea has acquired an Indonesian securities firm as part of its efforts to strengthen its overseas business. It signed a contract to take a 75 percent stake in Danpac Sekurita on Dec. 12, 2017.
Referring to the vision of KIS in becoming a leading brokerage house in Asia in 2020, KIS put their business unit in Indonesia as a business operations center in Southeast Asia. Different from venture capitalist or private equity investors, KIS agree on establishing a presence in Indonesia for the long term.
Meanwhile, the management of KIS believed in the sustainability of the increase in the number of capital market in the prosperity of this country. KIS main priority is targeting an abundance of direct investment and the transfer of ready-made, products and systems.
“We will also focus on introducing products that attract funds so as to invite foreign investors, we also look forward to leading the movement Buy Indonesia as we’ve ever seen in Korea at the beginning of 2000. The pace of change in interest on capital market products encourage KIS to consider investing in products of non-financial as well,” added Ryu.
Since 2014, KIS has talks with several local parties as their potential partner in entering the securities business in Indonesia. According to Branch Head of KIS in Indonesia Nam Kyoung his company is very enthusiastic to get into Indonesia because the market is very potential when viewed from the population and the growth of its economy.
Before KIS, other South Korean firm, PT KDB Daewoo Securities Indonesia is very serious about developing its securities business in Indonesia. According to KDB Daewoo President Director Kibum Bim, the people of Indonesia still have not understood the capital market. Whereas Indonesia capital market has good potential.
Indonesian capital market conditions making securities firms optimistic this year’s performance can go faster. Plus, Standard & Poor’s rating gifts are also a positive catalyst for the bond and stock market.
Before officially present in Indonesia, in November 2016, KIS has been chosen as the Mega Investment Bank by the South Korean government financial body after successfully meeting the equity requirements of KRW4 trillion (US$4.46 billion).
Currently KIS own international branches in London, New York, Hong Kong, Singapore and Ho Chi Minh (Vietnam). KIS targeting aggressive business expansion in Southeast Asia and are planning further diversification of business sectors in Indonesia.