ShinhanFinancial Group Co. Ltd.'s board approved plans to inject up to 500billion South Korean won into brokerage unit Shinhan Investment Corp.
Shinhan Financial will inject the capital by subscribing toa share issuance by the unit in the second half, according to a Form 6-K filedJuly 21. Additional details of the share issuance will be determined by theboard of Shinhan Investment.
The planned capital injection could help the unit tooffer comprehensiveinvestment banking services to compete with other brokerages businesses lookingto grow their book size. Capital markets law in South Korea only allows brokeragehouses with more than 3 trillion won of total capital to act as primebrokerages. Shinhan Investment's total equity was 2.476 trillion won as ofMarch 31.
As of July 20, US$1was equivalent to 1,141.58 South Korean won.