South Korea’s Shinhan Investment Corp. it has officially launched its new overseas office in Indonesia that will mainly focus on investment banking, as well as the development and sale of new financial products to lure Korean investors to the Southeast Asian country’s financial market.

According to the Korean brokerage, about 15 local financial institution chiefs including chairman of Lippo Group, one of Indonesia’s top five conglomerates, and head of Sentul City Tbk PT (BKSL), the country’s largest property development and management firm, attended the opening ceremony held at the local stock exchange in Jakarta on Thursday, showing avid interest in the Korean securities firm making a foray into Indonesia’s capital market.

Unlike other Korean securities firms that have made inroads into overseas markets, Shinhan Investment Corp. Indonesia aims to gain competitiveness in the investment banking business by mainly focusing on initial public offerings (IPO), mergers and acquisitions, and capital increase rather than on local retail brokerage business.

The brokerage and investment banking unit of Shinhan Financial Group is hoping its new Indonesian operation helps foster investment by Korean investors and companies into the Indonesian market. As part of its efforts to lure Korean investors to the Southeast Asian market, it plans to develop and provide financial products mainly composed of Indonesia’s treasuries and corporate bonds, as well as high-interest deposits.

Shinhan Investment Corp. will also seek promising investment opportunities in Indonesia and develop them as financial products to sell them through its private wealth management and corporate & investment banking businesses, the company said. To create synergy, it plans to fully utilize various investment banking and sales channels and expertise shared by Shinhan Financial Group’s other financial investment and banking affiliates in Korea and Indonesia.

By Park Yoon-gyu

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