▲ Samsung Securities
Samsung Securities has been given final approval to become South Korea's eighth promissory note business provider.
The Financial Services Commission (FSC) announced that it deliberated and resolved on Samsung Securities' application for the short-term financial business (promissory note) license during its regular meeting today (September 9).
With this approval, the total number of comprehensive financial investment service providers (primes) authorized to issue promissory notes has increased to eight.
Among prime brokers with 8 trillion won in capital, Mirae Asset, Korea Investment, and NH Investment & Securities have received approval, alongside KB, Kiwoom, Shinhan, and Hana Securities among those with 4 trillion won in capital.
Promissory notes are products with maturities of one year or less issued using the credit rating of securities firms designated as prime brokers with equity capital of 4 trillion won or more, up to a maximum of 200 percent of their equity capital.
Promissory note business operators are required to allocate 25 percent of the funds raised through promissory notes as venture capital by 2028.
Samsung Securities has secured the promissory note business license approximately nine years after being designated as a prime broker with equity capital of 4 trillion won or more in November 2017.
Previously, Samsung Securities' application for the promissory note license passed deliberations by the Securities and Futures Commission and a subcommittee in April, but the review was subsequently suspended due to disciplinary measures related to an inspection of regional branches.
Later in late July, the sanction was finalized as an institutional warning, resolving the grounds for disqualification regarding the promissory note license.
The FSC stated, "With this approval for Samsung Securities, we expect to respond to various corporate funding demands, including the supply of venture capital."
(Photo: Yonhap News)
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