First special sale sold out in 2.5 days; CMA-type promissory note also debuts
Rewards including gas vouchers and Samsung Electronics shares offered to customers who increase balances
Samsung Securities will launch its second special sale of promissory notes on Monday, offering a one-year product worth 100 billion won ($73.6 million) at an annual interest rate of 4.3 percent before tax.
Promissory notes are short-term financial products with maturities of up to one year that only securities firms designated as mega investment banks — those with equity capital of at least 4 trillion won — are authorized to issue.
The second special sale is open to customers holding a Samsung Securities general account, with individual subscriptions ranging from 1 million won to 300 million won per person. The sale will close early once the 100 billion won issuance limit is reached. The first special sale, also a one-year product at an annual rate of 4.3 percent worth 100 billion won, sold out in two and a half days.
Samsung Securities is also launching a new CMA-type promissory note. The CMA format allows customers to use automatic buy and sell functions for promissory notes when depositing or withdrawing funds.
Outside the special sale, regular promissory notes carry an annual rate of 4.6 percent for the installment savings type and 2.55 percent for the CMA and flexible-term types. By maturity, rates are 2.65 percent for two- to 90-day products, 3.2 percent for 91- to 180-day products, 3.6 percent for 181- to 270-day products, and 3.95 percent for both 271- to 364-day and one-year products. All rates are before tax.
Samsung Securities is also running a "promissory note launch event" through the end of October, offering rewards based on how much a customer's total balance increases after purchasing promissory notes. The minimum purchase requirement is 1 million won. Customers whose balance at the end of August was between 1 million won and 300 million won and who raise their balance to 300 million won or more by the end of October through promissory note purchases will be entered in a draw for a 50,000-won gas voucher, with 300 winners selected. Customers whose end-of-August balance was between 300 million won and 1 billion won and who reach 1 billion won or more by the end of October will be entered in a draw for one share of Samsung Electronics, with 30 winners selected. All customers who meet the conditions will receive a coffee coupon.
Samsung Securities received authorization from the Financial Services Commission in September to operate a short-term finance business, becoming the eighth domestic issuer of promissory notes. Its first special sale — a one-year product at an annual rate of 4.3 percent worth 100 billion won — sold out in two and a half days.
kacew@heraldcorp.com
