Securities Firms Set Eye on Central Asian Market

Securities companies are accelerating efforts to boost their global networks by setting up beachheads overseas in line with the Capital Market Consolidation Act.

Brokerage houses such as Daishin and Daewoo are lining up this year to set up offices in oil-rich Kazakhstan.

Daishin Securities said the Central Asian country is attractive because of its abundant energy reserves, and an increasing number of domestic companies are looking to expand there.

By setting up its base there ahead of others, it plans to increase its services to firms with the aim of becoming a global investment bank.

After making inroads into China, Vietnam and Indonesia, Daewoo Securities is also considering Kazakhstan as its next growth platform. It said it plans to set up a unit there to expand services in the Central Asian region.

Hyundai Securities, meanwhile, is aiming to launch a fund investing in energy companies in Kazakhstan by the end of this month.

Woori Investment & Securities, Korea Investment & Securities and Goodmorning Shinhan Securities are also considering expanding into Central Asia this year.

Mirae Asset Securities plans to open offices in India this year. The company with its sister firm, Mirae Asset Investments, plans to establish bases in the United States. Mirae Asset Group already has units in Hong Kong, China, Vietnam and the U.K. so far. Park Hyun-joo, the group chairman, noted in his New Year speech that it is time to ambitiously seek overseas markets for further growth.

Woori Investment is aiming to build up networks in Southeast Asia by launching its first global hedge fund operated in Singapore. It said the fund will invest in a variety of products such as equities, real estate and energy, targeting annual returns of 20 percent.