Ssangyong Securities opens office

Ssangyong Securities has opened a subsidiary brokerage in Hong Kong aimed at marketing South Korean equities to institutional investors.

The brokerage will conduct over-the-counter trade in Korean securities as well as underwriting primary equity-linked issues, such as Global Depositary Receipts and convertible bonds.

On April 1, the investment limit on Korean stocks will be raised to 18 per cent from the existing 15 per cent, but the Korean market has been in the doldrums recently.

Ssangyong Securities president and chief executive Milton Kim said: 'Investing in South Korea is limited by the pace of deregulation.' The government has opened financial markets marginally over the past three years, but high domestic interest rates prevented the government from liberalising at a faster pace. The government feared that Korea's high rates would attract a flood of hot money if the markets were opened up overnight.

Yesterday's opening is part of a plan by Ssangyong Securities to expand in the region. Before the end of this year, the brokerage plans to open an office in Shanghai.