Meritz Securities has selected Hong Kong as its first overseas base and is working to establish a local subsidiary by the end of the year. After focusing on domestic operations, the company is now making a significant move to expand its global presence.
According to the financial investment industry on August 18, Meritz Securities is progressing with the necessary procedures to establish its Hong Kong subsidiary in the second half of this year. However, the timeline for the establishment may extend into next year, depending on the approval schedule from local financial authorities.
The establishment of the Hong Kong subsidiary is particularly significant as it marks Meritz Securities' first foray into international markets. It is the only one among South Korea's top 10 securities firms without an overseas base.
The new Hong Kong subsidiary is expected to focus on brokerage services, including identifying local investment opportunities, facilitating transactions, and sourcing overseas deals. The company aims to leverage investment opportunities secured in Hong Kong to enhance synergies with its corporate finance (IB) and sales and trading (S&T) operations at headquarters.
Efforts are also underway to organize the subsidiary's structure. A candidate for the inaugural head of the subsidiary has been appointed, and the company is reportedly securing specialized personnel to handle local sales.
According to the Financial Supervisory Service, as of the end of last year, 16 South Korean securities firms (nine comprehensive financial investment firms and seven general securities firms) operated a total of 93 overseas branches in 15 countries. Among these, 83 were local subsidiaries and 10 were offices, with 11 branches located in Hong Kong.
The reason South Korean securities firms utilize Hong Kong as a key overseas base is due to its status as a financial hub in Asia. Hong Kong serves as a gateway to the mainland Chinese market, attracting global capital and offering various business opportunities, including initial public offerings (IPOs), brokerage, and corporate finance.
In fact, Hong Kong has emerged as a major source of revenue for South Korean securities firms' overseas subsidiaries, alongside the United States. As of the end of last year, the total assets of these overseas subsidiaries amounted to $35.74 billion (approximately 51.3 trillion won), with net profit reaching about $460 million (approximately 6.54 trillion won), a 67.8% increase from the previous year. The strong performance of subsidiaries in the U.S. and Hong Kong has been credited with driving overall profit growth.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.