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(Seoul=Yonhap Infomax) Gyeong Eun Park – Kiwoom Securities Co., South Korea’s first online brokerage, has entered the issuance bill market, aiming to supply 3 trillion won ($2.25 billion) in venture capital by 2028.
Unlike the four incumbent players that rely on extensive branch networks to attract customer funds, Kiwoom Securities is capitalizing on its online-only model to strengthen its presence in the wealth management (WM) sector.
Kiwoom Securities is emphasizing its unique “venture DNA” in investment operations. Following the official launch of its issuance bill business, the company has committed to supplying a total of 3 trillion won ($2.25 billion) in venture capital by 2028, including 1.2 trillion won ($900 million) in new capital that year.
On the 24th, Lee Chan-jin, Governor of the Financial Supervisory Service (FSS), visited Kiwoom Securities’ headquarters to review preparations for the short-term finance business (issuance bills), as well as to assess investor protection and IT stability measures.
During the meeting, Kiwoom Securities unveiled its venture capital supply plan in conjunction with the issuance bill business.
The company expressed strong confidence in its WM capabilities, having maintained the top market share among individual investors in South Korea’s domestic equities for 20 consecutive years.
Client deposits at Kiwoom Securities, which serve as buying power, total 15.1 trillion won ($11.3 billion), with 11.1 trillion won ($8.3 billion) held in Korean won.
Kiwoom Securities is the only firm to have proven that a WM business can thrive without a physical branch network. Its financial product balance more than doubled from 3.4 trillion won ($2.55 billion) at the end of 2023 to 7.5 trillion won ($5.63 billion) at the end of Q3 this year.
“Given the scale of funds entrusted to Kiwoom Securities and the growth in WM product balances, we expect strong inflows into the issuance bill business as well,” said Kim Ji-san, Executive Director of Strategic Planning at Kiwoom Securities.
The company’s venture capital supply has also doubled over the past five years, rising from 151.3 billion won ($113 million) in 2020 to 253.4 billion won ($190 million) at the end of last year, with a cumulative total of 1.1156 trillion won ($837 million).
“Our focus has been on investing in small and medium-sized enterprises (SMEs) and venture companies rather than large conglomerates,” said Park Sung-jin, Executive Director of Investment Operations at Kiwoom Securities. “We specialize in equity investments that align with the official nature of venture capital, rather than simple lending.”
According to the company, 98.6% of investments in the investment operations division target SMEs and venture companies. As of the end of Q2, equity-type investments accounted for 85.2% of the company’s total investments.
Building on this investment approach, Kiwoom Securities plans to supply approximately 3 trillion won ($2.25 billion) in venture capital by 2028. Next year, the company will provide 635 billion won ($477 million), increasing the total venture capital pool to 1.2 trillion won ($900 million)—a 1.5-fold rise. From 2028, annual new supply will reach 1.2 trillion won ($900 million).
“We will continue to pursue our existing strategy, with direct investments in SMEs and venture companies exceeding 40–50%, in line with the core nature of venture capital,” Park added. “Next year, we plan to expand our investment targets to include mid-stage companies.”
He continued, “Regarding venture capital and new technology investment companies, we will expand our participation in government-backed funds such as the Korea Fund of Funds next year, and focus anchor investments on promising sectors like AI, deep tech, and biotech. By 2028, we aim to play a key role in providing end-to-end solutions for companies throughout their lifecycle.”
gepark@yna.co.kr
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