South Korean JB Financial boosts presence in Vietnam via JB Vietnam Securities

JB Financial is ramping up its foothold in Vietnam

The Vietnam State Securities Commission (SSC) has just granted an operation license to JB Vietnam Securities Co., Ltd. with a charter capital of VND300 billion ($13 million).

Accordingly, JB Vietnam Securities is the wholly-owned subsidiary of South Korean lender Kwangju Bank – the banking arm of JB Financial Group.

Last December, VIR also reported that Kwangju Bank purchased Morgan Stanley's Vietnam-based subsidiary Morgan Stanley Gateway Securities JSC for VND382.4 billion ($16.63 million).

The successful deal is expected to pave the way for JB Financial to broker real estate and infrastructure investment in Vietnam for Korean investors.

Also, the firm plans to underwrite Vietnamese firms’ issuance of mezzanine instruments such as convertible bonds and bond warrants, as well as M&A opportunities through the acquired Vietnamese company.

In 2008, the US-based financial behemoth Morgan Stanley acquired 49 per cent of the stakes in local brokerage Huong Viet Securities and changed the brand name to Morgan Stanley Huong Viet Securities.

Over the past few years, South Korean investors have put great store on Vietnamese burgeoning economy thanks to the country’s young, tech-affine population. Especially, Vietnam’s financial landscape proves its appeal as a crucial playground for overseas funds to pour cash in, such as the banking industry or the stock market.

Earlier this year, the Ministry of Finance (MoF) decided to allow exemption and reduction of securities service fees in a bid to effectively support stock market participants.

Teh MoF is also seeking further comments to its proposal to implement intraday trading and short selling, which would be a big bonus for the local market to thrive.

In the first half of 2020, some prominent South Korean brokerages reported the highest margin loan balance, proving their active roles in the field, including Mirae Asset Securities, KIS, and KB Securities.