NH Investment & Securities signals intensified competition in the financial market through expansion into comprehensive investment account services

NH Investment & Securities is expected to become Korea’s third comprehensive investment account operator. The Securities and Futures Commission under the Financial Services Commission has reviewed and decided to designate NH Investment & Securities as a comprehensive financial investment company with over 80 trillion won in core capital.

The Integrated Money Account (IMA) is a system where securities firms invest customer deposits in corporate financial-related assets to generate returns. In this case, securities firms are required to bear the obligation of principal repayment. Only comprehensive financial investment companies with over 80 trillion won in core capital can operate IMAs.

If NH Investment & Securities is officially designated as an IMA operator, it will become the third institution to hold this status, following Korea Investment & Securities and Future Asset Securities. This will enable NH Investment & Securities to raise more funds in the corporate financial market and actively manage assets.

This change could boost competition in the securities industry. Under the IMA system, comprehensive financial investment companies can raise up to 300% of their core capital, allowing for more aggressive financial strategies.

Looking ahead, the designation of NH Investment & Securities as an IMA operator is expected to inject vitality into the domestic financial market. Once this process is complete, investments in the corporate finance sector are likely to become more active. For investors, this presents new opportunities but also requires managing risks that could pose burdens.