Korean insurer Hanwha Life closes acquisition of U.S.-based Velocity Clearing, marking the first Korean company to signify a daring foray into North American capital markets.

In a strategic move to broaden its reach in the North American capital markets, South Korean life insurance giant Hanwha Life has announced the acquisition of a 75% stake in Velocity Clearing, LLC, a technology-driven global financial services firm based in the United States.

Established in 1946, Hanwha Life brings over 78 years of experience to the table, having expanded from a life insurance company into a global financial group. The acquisition marks Hanwha Life's entry into the U.S. securities market, beyond its traditional insurance business.

Velocity Clearing, a self-clearing broker/dealer, provides execution services, clearing, and custody. The company supports retail traders and institutional clients, including brokers/dealers, hedge funds, family offices, and proprietary trading firms, in the United States and across the globe. Registered with the SEC and a member of FINRA and SIPC, Velocity Clearing held approximately USD 1.2 billion in total assets as of the end of 2024.

The net income of Velocity Clearing is increasing steadily, with continued profitability expected after the acquisition. Over the last three years (2022~2024), the company has shown a compound annual growth rate (CAGR) of 25% in revenue. This growth is expected to contribute to Hanwha Life's overall expansion and profitability.

Hanwha Life plans to collaborate with Velocity Clearing, its U.S. asset management affiliate Hanwha Asset Management (USA) Ltd., and the Hanwha AI Center (HAC) to strengthen its competitive edge in the U.S. market. The collaboration aims to combine financial expertise with advanced AI capabilities, positioning Hanwha Life for success in the dynamic U.S. market.

Representatives from Hanwha Life expressed optimism about the deal, stating that it will help establish a presence in the U.S. capital markets and ensure sustainable, long-term growth. The acquisition is expected to further Hanwha Life's goal of enhancing its profitability and providing high-quality global financial products to its clients.

As of the end of 2024, Hanwha Life reported total consolidated assets of USD 108.9 billion (KRW 160.2 trillion). The company is the first Korean insurance company to acquire a U.S. securities firm, signifying a significant milestone in its global expansion.

While the CEO of Velocity Clearing LLC is not explicitly named in the search results, John Paul DeVito is a notable executive associated with the company, listed as a board member with extensive leadership in financial services.

With a growing team of professionals in multiple locations throughout the United States and across the globe, Hanwha Life is pursuing regionally tailored strategies and strengthening its digital capabilities to expand its global financial ecosystem. This acquisition is a testament to Hanwha Life's commitment to growth and innovation in the financial sector.

Korean insurer Hanwha Life closes acquisition of U.S.-based Velocity Clearing, marking the first Korean company to signify a daring foray into North American capital markets.