Hyundai Motor Securities "Complete IB Division Restructuring, Diversifying Portfolio"

Establishment of a Dual Structure:
Structured Finance and Corporate Finance Divisions

On September 1, Hyundai Motor Securities announced that it had implemented an organizational restructuring to enhance the business competitiveness of its Investment Banking (IB) division.

The company stated that it has separated and specialized its existing IB division into two main divisions: the Structured Finance Division and the Corporate Finance Division. Hyundai Motor Securities plans to establish a sustainable revenue structure by solidifying the foundation of the structured finance division while significantly expanding the scope of its corporate finance operations.

Firstly, the existing IB division has been renamed as the Structured Finance Division, with a focus on businesses such as project financing (PF) and alternative investments. The company will pursue a 'selection and concentration' strategy centered around high-quality deals under a sophisticated risk management system in order to maintain stable profitability. Kang Deokbeom, who previously led the IB division, has been appointed as the head of the Structured Finance Division, thus ensuring continuity and stability in business operations.

In addition, the corporate finance function was separated from the existing IB division, leading to the establishment of a new, dedicated Corporate Finance Division. This newly established division is structured with two sub-departments: Corporate Finance 1 and Corporate Finance 2. Lee Inam, Executive Director, who is recognized for his outstanding network and track record in the asset-backed securities market, has been appointed as the head of the Corporate Finance Division.

Corporate Finance 1 is organized with the DCM1 and DCM2 teams at the forefront, aiming to maximize sales capabilities and deal sourcing in the bond brokerage and underwriting markets. Corporate Finance 2 comprises the Coverage 1 and Coverage 2 teams, broadening the scope of coverage sales targeting corporations and fostering organic synergy. Additionally, a Corporate Finance Support Team has been established directly under the division to support overall business operations.

Hyundai Motor Securities explained that, building on the stable profit base of its Structured Finance Division, it plans to gradually expand the business scope of its Corporate Finance Division. Based on the growth of its Debt Capital Markets (DCM) business, the company seeks to widen its business areas to include corporate bonds, Initial Public Offerings (IPO), and Mergers & Acquisitions (M&A) in the Equity Capital Markets (ECM) sector. Through these initiatives, Hyundai Motor Securities aims to diversify its IB portfolio and establish a stable and sustainable revenue structure.

A Hyundai Motor Securities official stated, "This organizational restructuring is a measure to flexibly respond to rapidly changing market conditions and to maximize expertise in each business sector," adding, "Based on the stable revenue of the Structured Finance Division, we will gradually expand into the corporate finance sector to elevate our IB competitiveness in the market over the medium to long term."

This content was produced with the assistance of AI translation services.