Leading Investment & Securities Decides on Physical Spin-off of 'Leading Global Asset Management'... Strengthening Private Fund Expertise

Leading Investment & Securities is spinning off its hedge fund management (general private collective investment business) division to establish a separate corporation. This is a strategic move to build a professional management system to improve management efficiency and strengthen profitability.

Leading Investment & Securities announced on the 6th that it held a board of directors meeting and decided to establish a tentatively named 'Leading Global Asset Management Co., Ltd. (Leading Global Asset Management)' through a simple physical spin-off method.

This spin-off will be conducted as a physical spin-off in which Leading Investment & Securities owns 100% of the newly established company's shares. Following the spin-off, Leading Investment & Securities will focus on its existing financial investment business, while the new company will exclusively handle private fund businesses such as hedge fund management. Due to the nature of a physical spin-off, there will be no change in the stake ratios of existing shareholders, and there will be no impact on the consolidated financial statements.

After the spin-off, the surviving company, Leading Investment & Securities, will have total assets (as of the end of 2025) of 1.8561 trillion KRW and a capital stock of 72.2 billion KRW. The newly established corporation, Leading Global Asset Management, is scheduled to be launched with assets of 10 billion KRW and a capital stock of 100 million KRW. The newly established business division's sales in the recent business year were approximately 4.2 billion KRW.

An official from Leading Investment & Securities explained, "We plan to enhance expertise through the independent management of the hedge fund sector, and the surviving entity will also increase the management stability of its existing business sectors to mutually strengthen profitability."

As for the future schedule, a general shareholders' meeting will be held on August 25, and September 1 will be confirmed as the spin-off date. The scheduled date for the spin-off registration is September 2. However, as this spin-off is subject to approval by the Financial Services Commission, the schedule may change depending on the results of the authorization and permission procedures.