Daol Financial Group headquarters on Yeouido, Seoul / Courtesy of Daol Financial Group

Market responds positively to Daol's nimble moves with stock price rise

By Anna J. Park

Continuing its aggressive restructuring, Daol Financial Group decided to sell its credit rating agency affiliate earlier this week. The move is in line with its latest efforts to secure liquidity by selling its key affiliates.

The group said it signed an agreement with Mason Capital Management and Lead Capital Management on Wednesday to sell its 100 percent stake in the credit rating subsidiary at a price of 13 billion won ($10.2 million). Both sides plan to complete the necessary steps for the sale, such as the financial authority's approval of the change in the largest shareholder of the company, within the first half of this year.

The group explained that the decision to sell the subsidiary is to restructure its business strategies, as it focuses on finding new growth engines. It also aims to secure liquidity from a medium- and long-term perspective, promoting stable growth by preemptively responding to the uncertainties of the financial market.

The financial group is currently seeking a new owner for its venture capital affiliate, which is not only the country's first-generation venture capital firm dating back to 1981, but also one of the top firms in the industry. Daol Investment & Securities plans to sell a 52 percent stake in the firm for about 200 billion won. Woori Financial Group is said to be interested in acquiring the business so as to strengthen its non-banking portfolio. Woori Financial Chairman Son Tae-seung said that the group plans to expand its non-banking businesses, including its brokerage, insurance and venture capital operations, in his New Year message announced earlier this week.

Daol Financial's Thai subsidiary is also out in the M&A market, with its 69.9 percent stake priced at about 100 billion won.

As the group is making nimble moves to lower risk factors amid increased uncertainties regarding unfavorable macroeconomic conditions, the stock price of Daol Investment posted a winning streak for three consecutive sessions this week. The stock price of the financial group's brokerage unit logged a daily increase of 1.94 percent on Wednesday, followed by another 8.19 percent rise on Thursday's session and another 3.19 percent rise on Friday's closing.