People pass by the logo of OK Savings Bank run by OK Financial Group in this undated file photo. Yonhap

OK Financial Group, a conglomerate that started as a private money lending firm, is considering selling its last remaining private money lending unit in a bid to establish a foothold in the securities sector, sources familiar with the matter said Monday.

While such a bid aligns with the group's portfolio diversification, they said the company is also believed to be pushing faster to improve its negative image, which is heavily associated with the private loan business.

The company formerly owned multiple money lending brands, including Rush & Cash and Miz Sarang, before steadily withdrawing from the market and entering the tier 2 banking industry.

It is working to sell H&H Financial Loan, its last remaining private loan company, after the Fair Trade Commission labeled it a conglomerate in its 2022 update.

The sale of H&H Financial Loan is necessary for the company as it plans to acquire Hanyang Securities, a midsized brokerage house that went up for sale this year.

OK Financial Group invested about 100 billion won in a fund created by KCGI, a private equity firm selected as the preferred bidder for Hanyang Securities.

The KCGI is screening potential buyers of the brokerage house to determine their eligibility under the guidelines of the Financial Services Commission (FSC).

“Under the circumstances, the FSC is pessimistic about a private money business acquiring a securities firm for transparency and other reasons,” a source said. “Accordingly, OK Financial Group wants to make clear it is done with private money business by selling H&H Financial Loan.”

Another source pointed out that financial consumers still associate OK Financial Group with private loan business that offers money at a higher rate than major commercial banks.

“The company apparently wants to shift away from such a negative image,” the source said.