This article appeared on Signal, a capital markets service, at 1:26 p.m. on Sept. 6, 2026.
Hana Securities is preparing to issue about 400 billion won worth of dollar-denominated hybrid bonds overseas, the first such move by a Korean brokerage. The firm has raised close to 1 trillion won in capital this year alone and is expected to push its equity capital above 7 trillion won for the first time. The push follows its short-term financing license, granted late last year, which allows it to issue promissory notes and has spurred a rapid expansion aimed at strengthening its competitive position.
Hana Securities recently signed underwriting agreements with Citigroup Global Markets Securities, JP Morgan and BNP Paribas to issue $300 million (about 411 billion won) in dollar-denominated hybrid bonds, according to investment banking sources on the 6th. The firm is returning to global debt markets four months after selling $300 million in dollar-denominated senior notes in May. Investor marketing is expected to begin on the 7th, with book-building slated for late this month.
No Korean brokerage has previously issued hybrid bonds to overseas investors. Among Korean companies, the last comparable attempt came about a year ago, in June of last year, when Hanwha Life Insurance sold subordinated notes, which rank one step above hybrid bonds in repayment priority. Overseas investors tend to assess such instruments conservatively, given their lower credit ratings than senior bonds and their relative unfamiliarity. Still, market participants broadly agree that the risk of an undersubscribed deal is low because of the firm's status as a Hana Financial Group affiliate.
A successful 400 billion won hybrid bond sale overseas would lift Hana Securities past Kiwoom Securities to become the seventh-largest brokerage in Korea. On a standalone basis, Hana Securities had 6.7172 trillion won in equity capital at the end of the first half, ranking eighth in the industry behind Kiwoom Securities at 6.8909 trillion won. Adding 411 billion won from the dollar hybrid bonds to its balance sheet would push equity capital into the 7 trillion won range. That would also narrow the gap to roughly 1 trillion won from the 8 trillion won in equity capital required to qualify as an integrated management account operator.
Market watchers point to the accelerating pace of Hana Securities' capital buildup this year. In June, the firm resumed hybrid bond issuance for the first time in three years, adding 500 billion won in accounting capital. The sale had a clear purpose: it was a new issue aimed at expanding equity capital, not a refinancing tied to call options coming due on previously issued capital securities. Nor was the firm under pressure to raise funds quickly. Its net capital ratio, a measure of capital adequacy, stood at 1,550.55% as of the first half, far above the 100% regulatory floor.
The move is seen as an effort to scale up in earnest, in line with Hana Financial Group's emphasis on productive finance. After three years focused on shoring up its balance sheet in the wake of soured real estate project financing, the firm is now moving to secure the funds it needs to strengthen its sales competitiveness and supply venture capital. "Until two years ago, Meritz Securities and Kiwoom Securities ranked below Hana Securities in equity capital, and their sudden leapfrogging created a sense of crisis," an investment banking official said. "With the promissory note license allowing it to raise funds up to twice its equity capital, the firm appears to be aggressively pursuing capital increases to engineer a turnaround."
