Hana Financial Group postponed its plan to convert Hana Asset Management from a subsidiary of Hana Securities into a direct subsidiary of the holding company, according to sources on the 24th. The restructuring, originally scheduled for Q4 of last year, remains without a concrete timeline as the group prioritizes strategic decisions following Hana Bank's investment in Dunamu. Market observers attribute the delay to capital adequacy concerns, with the Dunamu stake acquisition expected to reduce Hana Financial's Common Equity Tier 1 (CET1) ratio by approximately 11 basis points. The postponement comes as South Korea's Big 4 financial groups increasingly focus on capital market division growth through enhanced synergies between securities and asset management operations.
Dunamu Investment Shifts Hana Financial's Strategic Priorities
Hana Bank's board of directors formally approved the acquisition of a stake in Dunamu, the operator of South Korean cryptocurrency exchange Upbit, with the transaction valued at approximately 1 trillion won. Financial industry sources stated that discussions related to the investment occurred at the holding company level due to its impact on Hana Financial's capital adequacy ratios. The conversion plan for Hana Asset Management, which had been under review since 2024, was moved to a lower priority following the digital asset investment decision. Hana Securities acquired a 51% stake in the former Hana UBS Asset Management from UBS in 2023, receiving regulatory approval for the ownership change from the Financial Services Commission. At the launch ceremony for Hana Asset Management, Hana Financial Group Chairman Ham Young-joo stated the company would collaborate with the group's domestic and international business networks in securities, capital, and insurance sectors. CEO Kim Tae-woo of Hana Asset Management publicly stated in early last year that the conversion was under review for completion within the year.
Hana Asset Management Records 38.4 Trillion Won in Total Assets
As of the 22nd, Hana Asset Management's combined fund and discretionary investment assets totaled 38.4 trillion won, according to Yonhap Infomax data. This represents a 13% increase from the 33.8 trillion won recorded at the start of the year. However, the figure declined 9% from the 42 trillion won level observed in May. During the same period, the overall fund and discretionary investment market decreased by approximately 1% due to equity market volatility, indicating Hana Asset Management's decline exceeded the industry average. A financial industry official noted that the direct subsidiary conversion could accelerate decision-making processes by eliminating the intermediary role of Hana Securities, enabling faster capital allocation and channel strategy coordination with the banking division.
Big 4 Financial Groups Show Widening Asset Management Scale Gap
Among South Korea's Big 4 financial holding companies, Hana Asset Management operates at a significantly smaller scale compared to its peers. As of the 22nd, KB Asset Management recorded 184.3 trillion won in combined fund and discretionary investment assets, while Shinhan Asset Management reached 149.9 trillion won and Woori Asset Management totaled 87.4 trillion won. Shinhan Financial Group, which maintains Shinhan Asset Management as a 100% direct subsidiary, reported a 135.1% year-over-year increase in asset management net profit for the first half of the year. The strong performance resulted from expanded fee income driven by assets under management growth centered on exchange-traded funds, combined with improved securities profit and loss. A financial industry representative stated that board approvals from both Hana Securities and Hana Financial Group would be required for the subsidiary conversion, adding that the restructuring could serve as a catalyst for scale expansion given Hana Asset Management's relatively small size among the Big 4.
FAQ
What did Hana Financial Group decide regarding Hana Asset Management?
Hana Financial Group postponed its plan to convert Hana Asset Management into a direct subsidiary of the holding company. The restructuring, originally scheduled for Q4 of last year, currently has no concrete timeline for implementation.
Why did Hana Financial delay the Hana Asset Management subsidiary conversion?
The delay occurred after Hana Bank's 1 trillion won investment in Dunamu, which is expected to reduce Hana Financial's CET1 ratio by approximately 11 basis points. Market sources indicate the digital asset investment became a higher strategic priority than the asset management restructuring.
How does Hana Asset Management's size compare to competitors?
As of the 22nd, Hana Asset Management held 38.4 trillion won in total assets, significantly smaller than KB Asset Management's 184.3 trillion won, Shinhan Asset Management's 149.9 trillion won, and Woori Asset Management's 87.4 trillion won.
