Working Note: Hana Securities

Knowledge Snapshot

This file is issuer coverage memory for objective context. It records confirmed facts and structural context so that a new research agent can continue coverage without repeating initial research. Monitoring judgments, unresolved issues and writing cautions belong in issuer_notes.md. Detailed numerical extracts belong in data/*.json.

Last updated: 2026-06-12

Issuer Overview

• Hana Securities Co., Ltd. is a South Korean securities and capital-markets company wholly owned by Hana Financial Group Inc.
• The coverage shorthand / public ticker used in reports is HANFGI; the issuer name used in current reports is Hana Securities Co., Ltd.
• The company should be analysed as a market-based non-bank financial issuer, not as Hana Bank and not as a direct proxy for HFG's consolidated bank-centred credit profile.

Core Credit View

• Credit quality is supported by HFG ownership, group franchise value, a large equity base, high reported NCR, domestic high-grade market access and recovery in profitability after the FY2023 loss.
• The main constraints are securities-company market sensitivity, large FVTPL assets / liabilities, repo and short-term funding reliance, CP / short-term bond rollover, PF-related risk, guarantees and proprietary-account volatility.
• HFG support expectations matter, but existing coverage has not confirmed a contractual HFG or Hana Bank guarantee for all Hana Securities debt.

Business and Franchise View

• Hana Securities operates across wealth management, brokerage, wholesale, investment banking, sales and trading, asset management / advisory and capital-markets activities.
• HFG's customer base and brand support the franchise, but earnings remain sensitive to equity markets, rates, credit spreads, foreign exchange, derivatives, investment banking flow and market liquidity.
• The company returned to profitability after the FY2023 loss according to HFG Databook data used in the existing report, but the durability of the recovery depends on fee income, market gains / losses, PF exposure and funding stability.

Capital Structure and Structural Points

• Hana Securities is a wholly owned HFG subsidiary according to existing audit-report / sustainability-report sources.
• Equity capital is roughly in the KRW 6tn range in existing coverage, supporting loss absorption and regulatory capacity for securities-company activities.
• Debt and funding instruments can include borrowings, repos, CP, debentures, short-term bonds, subordinated bonds and foreign-currency bonds. Instrument-level terms must be checked before bond-specific conclusions.

Liquidity and Funding View

• Funding risk should be assessed through repo balances, CP, short-term bonds, debentures, foreign-currency funding, cash and deposits, liquidity maturity tables, collateral-eligible assets and intragroup support capacity.
• Existing data show large marketable assets and liabilities, including FVTPL positions; these are central to both revenue generation and stress liquidity risk.
• NCR is a key regulatory buffer, but it should not be treated as a substitute for liquidity analysis under market stress.

Credit Strengths

• 100% ownership by Hana Financial Group and strategic relevance as the group's securities / capital-markets platform.
• Meaningful domestic franchise and market access supported by the Hana brand.
• Large equity base and high reported NCR in existing coverage.
• Profitability recovery after the FY2023 loss, including stronger 2024-2026 Databook figures.

Credit Weaknesses

• Securities-company earnings volatility from FVTPL assets, S&T, proprietary positions, derivatives, IB cycle and market conditions.
• Reliance on short-term market funding, repos, CP, short-term bonds and collateralised funding.
• PF, bridge-loan, guarantee, commitment and proprietary-investment details remain insufficiently extracted.
• Parent support expectations are not the same as contractual guarantees for individual bonds.

Rating Watchpoints

• Latest original reports and outlooks from NICE, KIS, Korea Ratings and S&P.
• Any change in HFG or Hana Bank ratings that affects support context.
• Domestic rating outlooks, market access for CP / short-term bonds, and disclosure of PF-related losses or guarantees.

Recurring Analytical Cautions

• Do not import Hana Bank's deposit franchise or bank ratings into Hana Securities bonds.
• Do not mix HFG Databook asset figures including trust assets with K-IFRS consolidated audit-report assets.
• Do not treat domestic AA-level rating context as equivalent to international bank senior ratings.

Reliable Core Sources

• Hana Financial Group quarterly IR Databooks, especially the Hana Securities sheet.
• Hana Financial Group financial-report page for Hana Securities audit and half-year review reports.
• Hana Securities FY2024, 1H2025 and FY2023 consolidated audit / review reports saved in data/.
• Hana Securities 2023 Sustainability Report for profile and ownership context.
• Original rating-agency reports should replace media references when obtained.

Issuer Notes

This file is issuer coverage memory for research and writing judgment. It is not a work log. Detailed earnings, balance-sheet, funding, NCR and source-document extracts belong in data/*.json; this file should preserve monitoring priorities, unresolved issues, analytical cautions, wording cautions, and next-check items for future coverage.

Last updated: 2026-06-12

Ongoing Follow-Up Items

• Monitor Hana Securities as a market-funded securities company, not as Hana Bank or a deposit-funded bank credit.
• Use the Hana Financial Group quarterly Databook as the recurring source for Hana Securities earnings, assets including trust assets, shareholders' equity, NCR, NOC, total risk and operating statistics.
• Recheck Hana Securities consolidated audit and half-year review reports from the HFG financial-report page for balance sheet and funding risk, including FVTPL assets / liabilities, borrowings, repos, CP, debentures, short-term bonds, foreign-currency bonds, liquidity maturity tables, guarantees and commitments.
• Track whether profitability recovery after the FY2023 loss is sustained through fee income, client franchise and capital-market activity, or remains dependent on market-sensitive gains.
• Monitor short-term funding access, repo haircuts, CP / short-term bond rollover, foreign-currency funding and collateral calls.
• Keep domestic ratings, outlooks and support assumptions from NICE, KIS, Korea Ratings and S&P on the next-check list.

Unresolved Issues and Items to Check Next Time

• Hana Securities FY2025 audited consolidated financial statements were not located in the initial review; FY2025 figures in the report rely on HFG Databook data.
• Latest primary rating-agency reports from NICE, KIS, Korea Ratings and S&P have not been obtained.
• Real estate PF, bridge loans, guarantees, unsold inventory, proprietary-account investments and detailed FVTPL exposure have not been fully extracted.
• Individual bond offering circulars, pricing supplements, guarantee wording, covenants, cross-default wording, governing law, subordination and any loss-absorption terms have not been reviewed.
• Live Bloomberg, OAS, CDS, spread and peer relative-value data are not available in the project unless supplied by the user.

Analytical Cautions

• Keep Hana Securities standalone / securities-company risk separate from Hana Bank operating-bank credit and from HFG consolidated bank-centric metrics.
• HFG's 100% ownership creates support expectations, but it is not a contractual guarantee unless the relevant security document explicitly says so.
• Do not confuse HFG Databook figures including trust assets with K-IFRS consolidated audit-report total assets.
• A high NCR does not eliminate liquidity stress risk from repos, CP, short-term bonds, FVTPL assets, collateral calls or short-term market closure.
• Treat secondary rating / news articles as supplementary until original rating-agency releases are obtained.

Report Wording Cautions

• Use "HFG ownership and support expectation" rather than "parent guarantee" unless a specific bond document confirms an explicit guarantee.
• Do not describe Hana Securities as having Hana Bank's deposit franchise, bank liquidity profile or bank ratings.
• Distinguish Hana Bank ratings and HFG group context from Hana Securities' own issuer / bond ratings.
• Avoid live relative-value or investment-decision language without supplied market data.

Follow-Up on Management Strategy, Investment Plans, and Financial Policy

• Reassess whether Hana Securities remains strategically important to HFG's non-bank earnings, wealth management, capital markets and corporate-finance franchise.
• Track whether asset growth is accompanied by higher marketable-asset risk, PF exposure, guarantees, short-term funding reliance or collateral needs.
• Monitor whether earnings recovery is becoming structurally embedded or remains vulnerable to market conditions and valuation swings.
• Watch for changes in HFG's capital allocation, ownership, intra-group support stance or public statements about securities operations.

Items to Check for Ratings and Bond Investors

• Latest original NICE, KIS, Korea Ratings and S&P reports, rating outlooks, support assumptions and downgrade / upgrade triggers.
• For each bond: issuer, guarantee, ranking, subordination, covenants, cross default, change of control, governing law, tax, foreign-currency settlement and any loss-absorption language.
• Domestic market access for CP, short-term bonds, plain bonds, repos and foreign-currency bonds.
• PF-related disclosures, guarantees and commitments because they are central to judging whether the recovery from the 2023 loss is durable.