Extending DGHH (2017), we investigate the determinant of risky financial asset holdings of Korean industrial firms. We specifically focus on the difference on the determinants of risky financial assets for Chaebol vs. stand-alone firms, and find that Chaebol firms tend to increase more in risky financial assets as their financial assets grow than stand-alone firms. The standalone firms with low operating performance, low sales growth, high leverage, and short-term debt redemption pressure invest more in risky financial assets to make up for their worse operating performance, while the risky financial assets of Chaebol firms are not related to their operating performance or financial distress. These results are not fully explained by the precautionary motive of cash holdings.