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Korea Investment lists structured warrants in Indonesia

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Korea Investment & Securities CEO Kim Sung-hwan (third from left) attends a ceremony held to celebrate the listing of Korea Investment’s 11 SWs on the IDX on Oct. 11, 2024 (Courtesy of Korea Investment) 

Korea Investment & Securities Co. has become the first South Korean securities firm to list derivative warrants in Indonesia after issuing 11 structured warrant (SW) products on the Southeast Asian country’s stock exchange on Friday.

SW is a financial instrument that gives its holder the right to buy or sell underlying securities at a certain price and at a particular time. This is a kind of derivative warrant like equity-linked warrant (ELW) trading in Korea.

SW is the first derivate product trading in Indonesia, and its debut in September 2022 in the country is expected to pave the way for the expansion of the Indonesian derivative market despite its short history.

Of the 11 SWs listed on the Indonesia Stock Exchange (IDX), the Korean brokerage firm has issued 120 million shares of call warrants tracking Bank Mandiri Persero Tbk PT (BMRI) and 150 million shares of call warrants tracking Aneka Tambang Tbk PT (ANTM).

Five securities firms, including Korea Investment, are vying for the SW market in the Southeast Asian country.

With its advance into the Indonesian SW market, the Korean brokerage firm is expected to accelerate its advance into the Southeast Asian derivative market.

Last year, Korea Investment entered the warrant market in Hong Kong for the first time for a Korean securities firm.

It has already proven its outstanding derivative trading system and competitive products in Vietnam, where it has issued multiple derivative warrants since 2019, according to the brokerage.

“We will strive to unlock various business opportunities in overseas markets beyond Korea to lead the derivate market in Asia,” said Kim Sung-hwan, chief executive of Korea Investment who attended a ceremony on Friday to celebrate the listing of the brokerage’s 11 SWs on the IDX.

Korea Investment is Korea’s biggest issuer of ELWs, controlling more than 90% of the Korean ELW market.

By Tae-Hoon Lee

beje@hankyung.com

Sookyung Seo edited this article.

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