Hanyang Precision chairman discloses 158 billion won in new loans from Hana Securities and Korea Securities Finance

Total stock-backed borrowings reach 432.2 billion won; Hana Securities accounts for more than half

Collateral maintenance ratio set at 200% as Hanmi Science share price volatility draws scrutiny

Hanmi Pharm headquarters. [Provided by Hanmi Pharm]
Hanmi Pharm headquarters. [Provided by Hanmi Pharm]

Stock-backed borrowings by Shin Dong-kook, chairman of Hanyang Precision and the largest individual shareholder of Hanmi Science, have expanded to nearly 430 billion won ($316 million). With Hana Securities emerging as the primary source of funding, the burden of managing collateral amid share price swings is also growing.

According to DART, the Financial Supervisory Service's electronic disclosure system, Shin pledged an additional 3,108,644 shares of Hanmi Science as collateral to Hana Securities on Sept. 21 and borrowed 98 billion won. The loan carries an annual interest rate of 4.45%, with a collateral maintenance ratio set at 200%. On the same day, Shin also deposited 1,531,200 Hanmi Science shares with Korea Securities Finance as collateral to raise an additional 60 billion won.

As a result, Shin's total outstanding loans secured by Hanmi Pharm and Hanmi Science shares rose by about 52.7 billion won from early September, reaching approximately 432.2 billion won.

Of that total, loans from Hana Securities alone account for about 234.2 billion won — more than half of his total borrowings. Industry observers say it is highly unusual for an individual majority shareholder, outside the founding family of a large conglomerate, to maintain stock-backed loans of several hundred billion won concentrated at a single financial institution.

The latest borrowing expansion is seen as a move to secure cash without selling shares, allowing Shin to maintain and strengthen his controlling stake. However, the growing debt load has also raised the risk exposure tied to any decline in the share price.

With the collateral maintenance ratio on the Hana Securities loan set at 200%, Shin must maintain collateral valued at 196 billion won or more against the 98 billion won loan. Should Hanmi Science's share price fall sharply and fail to meet the required ratio, Shin could face demands for additional collateral or partial repayment — and if those obligations go unmet, he could be exposed to the risk of a forced sell-off.


silverpaper@heraldcorp.com