Korean financial companies are successively acquiring securities firms under mid-sized Japanese securities groups. Following Viva Republica’s acquisition of all shares in CHEER Securities, transactions involving Sanko Securities and GI Capital Management’s securities business are taking place one after another.
South Korea’s leading fintech company Viva Republica is making a full-scale entry into the Japanese market by acquiring all shares in CHEER Securities, a smartphone-only securities firm under Tokai Tokyo Financial Holdings. The acquisition is reportedly valued at approximately ¥4 billion.
Mirae Asset Securities has entered into a share purchase agreement to acquire all shares in Sanko Securities, a company under Okasan Securities Group, through its US subsidiary, and will invest ¥12 billion in the US subsidiary to fund the acquisition. The funds will also be used to expand its local business, and the company is expected to use Sanko Securities’ licence after completion of the acquisition.
On 12 October, Hanwha Investment & Securities entered into an SPA to acquire the securities business of Japan’s GI Capital Management. All 3 acquisitions place a strong emphasis on obtaining licences in Japan, and the acquirers may inherit Type I Financial Instruments Business Operator status after the acquisitions.
On the market side, competition over scale in Japan’s online securities market is seen as one factor prompting small securities firms to sell, while the expansion of NISA and growing investment among younger people are supporting the entry of Korean companies.