Woori Financial eyes acquiring Korea Foss Securities

Korea Foss Securities, an online-exclusive brokerage company, is up for sale and Woori Financial Group is reviewing the acquisition of the firm.

According to investment banking industry sources on Monday, Korea Foss Securities’ major shareholders, including Korea Securities Finance Corp., are holding negotiations with various investors who have shown an interest in acquiring the firm.

Korea Securities Finance Corp. is currently the largest shareholder of the online brokerage firm with a 51.68 percent stake. Fintech firm Fount is the second-largest shareholder with a 28.64 percent stake. Dozens of asset management companies also hold portions of the remaining stake.

Founded in September 2013 as “Fund Online Korea,” the brokerage company changed its name to Korea Foss Securities in April 2019, shortly after being acquired by Korea Securities Finance Corp. in late 2018.

Korea Foss Securities’ key service is providing consumers with fund products through an online platform called “Fund Supermarket.” The brokerage firm possesses a total capital of 69.8 billion won ($52.2 million), as of January 2023.

Woori Financial Group, which has long been outspoken about its willingness to acquire brokerage subsidiaries, is considered as the strongest potential buyer.

“Woori Financial Group is currently in contact with various securities firms over the matter of potential acquisitions, and Korea Foss Securities is one candidate,” an official at the financial group said, adding that no final decisions have been made.