Hanwha Life, South Korea’s first life insurance company, completed its acquisition of a 75% stake in Velocity Clearing, LLC, a U.S.-based global financial services firm, on July 30, 2025. This marks the first time a Korean insurer has acquired a U.S. securities firm, signaling Hanwha Life’s strategic expansion into North American capital markets beyond its traditional insurance business. The deal, with the majority stake previously owned by an affiliate of Cerberus Capital Management, L.P., positions Hanwha Life to enhance profitability and offer high-quality global financial products.
Velocity Clearing, founded in 2003 and headquartered in New York, provides technology-driven brokerage services, including execution, clearing, settlement, custody, securities lending, and financing. As of the end of 2024, it managed approximately $1.2 billion in total assets, with a 25% compound annual growth rate (CAGR) in revenue from 2022 to 2024 and steady net income growth. Since 2023, Velocity has seen a 300% increase in assets under custody, doubled its correspondent clearing business, expanded its technology team by 50%, and entered Latin American and Asian markets.
Hanwha Life, established in 1946, reported consolidated assets of $108.9 billion (KRW 160.2 trillion) by the end of 2024. The acquisition aligns with its global expansion strategy, following ventures in Vietnam, Indonesia, and a recent investment in Indonesia’s Nobu Bank. Hanwha plans to retain Velocity’s existing staff and leadership, including CEO Michael Logan and President Brian Schaeffer, to ensure operational stability while fostering synergies with its U.S. asset management affiliate, Hanwha Asset Management (USA) Ltd., and the Hanwha AI Center in San Francisco. These collaborations aim to combine financial expertise with advanced AI capabilities to strengthen Hanwha’s competitive edge in the U.S.
The transaction, subject to U.S. and South Korean regulatory approvals, was advised by BDA Partners and Skadden for Hanwha Life, and Houlihan Lokey, Wollmuth Maher & Deutsch, and Schulte Roth & Zabel for Velocity Clearing. Hanwha Life’s move is seen as a milestone for Korean finance, establishing a presence in the U.S. capital markets and leveraging digital financial technologies for sustainable growth.