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Taiwanese Financial Company Plans to Invest More in Korea
Date
2014.11.11
Views
1005

According to Yonhap News,

(TAIPEI=Yonhap News)Chairman Ho Ming Hong of Yuanta Securities Asia Financial Services Limited pledged to invest KRW 200 billion in Yuanta Securities Korea and increase the dividend to the 60 to 70 percent level of the net profit when management stabilizes.

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He also said Yuanta Securities Asia Financial Services Limited will become a bridge that connects the financial markets of Korea and Asia by introducing Korea’s outstanding financial products to Asian investors.

Taiwan’s Yuanta Securities Asia Financial Services Limited acquired Korea’s Tongyang Securities for KRW 271.2 billion this year and established Yuanta Securities Korea.

"Our investment in Korea is a long-term project. We plan to invest an additional USD 200 - 300 million in Yuanta Securities Korea,” said Ho.

He hopes to make Yuanta Securities Korea one of the five largest financial companies in Korea in the next two to three years after solving the Tongyang crisis.

"The annual dividend of Yuanta Securities Asia Financial Services Limited is about 60 - 70 percent of the net profit. We will increase the dividend of Yuanta Securities Korea to the same level as that of Yuanta Securities Asia Financial Services Limited when the management stabilizes," said Ho.

The dividend rate of Taiwanese companies is more than 3 percent, which is much higher than that of Korea’s (1 percent).

“Taiwanese investors do not like companies with a low dividend rate, as they believe low-dividend companies do not have sound management. When a company makes a profit, the profit should be returned to the investors,” said Ho.

Yuanta Securities Asia Financial Services Limited will not only help Korean investors invest in China and other regions, but also introduce the Korean investment market to Chinese and other Asian investors.

"The interest rate of Korea is relatively higher than that of Taiwan and Hong Kong, and Korea is home to many global companies, including Samsung Electronics and Hyundai Motor. The Korean investment market is as attractive as the Chinese market,” said Ho.

He stressed that there are many investors in China and other regions who wish to invest in Korea but do not know how to. In this regard, Yuanta Securities Asia Financial Services Limited will introduce and sell Korean financial products to other Asian markets.

Yuanta Securities Asia Financial Services Limited established a local subsidiary in Shenzhen and acquired a financial firm and an asset management company in Indonesia.

Under the company’s motto, We Know Asia, Yuanta Securities Asia Financial Services Limited will expand investment destinations in Asia, such as Vietnam and Thailand, to become a leading financial company in Asia.

Yuanta Securities Asia Financial Services Limited is a leading Taiwanese financial company that recorded sales of TWD 13.998 billion (about KRW 491.3 billion) and net profit of TWD 3.583 billion in 2013.

jhpark@yna.co.kr

Copyrights Yonhap News. All Rights Reserved.

Source Text

Source: Yonhap News (November. 02, 2014)

** This article was translated from the Korean.
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