Foreign firms enter Korean securities industry

Agreements announced this week will see foreign investors take a controlling interest in two Korean securities companies ûáIleun Securities and Hyundai Securities. And although the size of these deals are markedly different, they both result from a need for cash by conglomerates trying to restructure their finances and government bodies bailing out banks.

A group led by American International Group (AIG) and W L Ross have proposed to increase their investment in three financial units, currently controlled by the Hyundai conglomerate, to W1.1 trillion ($1 billion). If the deal goes ahead after the investors have examined Hyundai SecuritiesÆ accounts, it will give the foreigners the largest stake û 23.7% û in Hyundai Securities, which is one of the most profitable of the Hyundai companies and the countryÆs biggest broker. They will also own more than 50% in each of Hyundai Investment Trust and Securities and Hyundai Investment Trust Management.