FSC approves designation at regular meeting

Number of licensed comprehensive investment firms rises to nine

The headquarters of Meritz Financial Group [Meritz Securities]
The headquarters of Meritz Financial Group [Meritz Securities]

Meritz Securities has received authorization to issue short-term bonds, bringing the total number of securities firms competing in that market to nine.

The Financial Services Commission designated Meritz Securities as a comprehensive financial investment firm with equity capital of 4 trillion won ($2.94 billion) or more at its regular meeting Wednesday afternoon and voted to grant the firm a short-term finance business license, commonly known as a promissory note issuance license. The move raises the total number of firms authorized to conduct the business to nine.

Earlier, Mirae Asset, Korea Investment & Securities and NH Investment & Securities received licenses as firms with equity capital of 8 trillion won or more, while KB, Kiwoom, Shinhan, Hana and Samsung Securities were approved in the 4 trillion won tier.

The product is issued on a firm's own credit by securities companies designated as comprehensive investment firms with equity capital of at least 4 trillion won, carries a maturity of one year or less, and may be issued up to 200 percent of the issuer's equity capital.

Licensed issuers must channel at least 25 percent of funds raised through such issuances into venture capital by 2028.

The FSC said it expects the approval to help meet the diverse funding needs of businesses, including through the supply of venture capital.


yuni@heraldcorp.com