Hanwha Life, a life insurer under the South Korean conglomerate Hanwha Group, said it has agreed to acquire a 75% stake in the parent company of US-based financial services firm Velocity Clearing.
The management team of Velocity Clearing will retain the remaining minority stake, Hanwha Life said in a statement. Financial terms of the deal were not disclosed.
The acquisition marks Hanwha Life’s entry into the US financial sector, providing the company with a foothold to expand its global presence and maximize return on investment, per the announcement.
“As we look to expand into the US market, we wanted to partner with a firm that has a strong footprint in financial services—and that is Velocity Clearing,” said Hanwha Life CEO Seung Joo Yeo.
Velocity Clearing is a broker that allows clients to trade, borrow, and invest. Its services include execution, clearing, and custody along with securities lending and financing.
Since 2023, Velocity Clearing has grown its assets under custody by 300%, more than doubled its correspondent clearing business, increased its US and offshore technology staff by 50%, and expanded into Latin American and Asian markets.
Hanwha Life’s acquisition of Velocity Clearing will enable the New York-based brokerage and global financial technology company to continue expanding into the Asian market.
“This partnership builds on our plans, allowing us to effectively address growing customer demand in new markets and positioning us for long-term success,” said Velocity Clearing president Brian Schaeffer.
Founded 78 years ago, Hanwha Life has been instrumental in developing South Korea’s insurance industry and economic growth. The company has expanded into overseas markets including Vietnam and Indonesia, with the United States being its latest strategic market.
Earlier this year, it entered international banking by investing in Indonesia’s Nobu Bank.
In 2023, the insurance company reported total assets of $113.77 billion.
Last week, Singapore’s competition regulator cleared Hanwha Group’s S$790.6 million ($589.30 million) takeover offer for oil contractor Dyna-Mac on Friday.
The acquisition will provide Hanwha access to Dyna-Mac’s two oil and gas manufacturing facilities in Singapore, along with its floating production storage and offloading vessels.