Hana Securities Co. Ltd. (HANFGI)

At present, Hana Securities’ credit quality can be assessed as a securities-company credit supported in the domestic market by high ratings and support expectations as a wholly owned HFG subsidiary. However, to determine investment-grade suitability for international investors, the latest international ratings, issuer of foreign-currency bonds, guarantees, ranking, and terms need to be confirmed separately. The quality of the credit is not deposit-driven bank credit like Hana Bank, but market-based financial credit sensitive to marketable assets, short-term funding, repos, CP, and proprietary-account gains and losses. The credit direction has stabilised because the company returned to profit in 2024, 2025, and 1Q26 after the 2023 loss period, but it cannot yet be said that the earnings improvement has become structurally embedded; the pace of improvement should be viewed as gradual and dependent on market conditions.

The largest constraint, meanwhile, is the company’s securities-company reliance on market funding and earnings volatility. For an issuer with borrowings of KRW 17.6 trillion, debentures of KRW 5.6 trillion, FVTPL assets of KRW 37.7 trillion, and FVTPL liabilities of KRW 21.9 trillion at end-June 2025, a high NCR in normal times is not sufficient to judge liquidity under stress. Cash and deposits are in the KRW 4 trillion range, while financial liability cash flows due within three months at end-2024 were around KRW 35.0 trillion, so liquidity assessment must consider not only the cash balance, but also collateral-eligible assets, repo market access, CP and short-term bond rollovers, and intragroup support capacity. HFG support expectations are supportive, but they differ from an explicit guarantee for an individual bond, so the issuer and bond terms must always be confirmed.

The monitoring focus is the Hana Securities sheet in the HFG Databook, Hana Securities audit and semi-annual review reports, NCR, NOC, Total risk, borrowings and debenture breakdown, short-term liability maturities, cash and deposits, FVTPL assets and liabilities, PF-related disclosures, guarantees and commitments, domestic rating outlooks, and the ratings, capital, and earnings of HFG and Hana Bank. If the full-year 2025 audited report for Hana Securities and the latest original rating agency reports become available, the current credit view can be further tested for the repeatability of the earnings recovery, PF-related risk, foreign-currency bond terms, and the extent of parental support incorporated into ratings.