Mirae Asset Obtains Approval To Enter Short-Term Finance Market

Headquarters of Mirae Asset Securities in Seoul (Yonhap)

South Korea’s financial regulator Financial Services Commission has cleared Mirae Asset Securities to issue short-term finance bills after rigorous scrutiny, sources said on Wednesday.

With the final approval, the brokerage firm will have more financial leeway to handle larger funds than a regular securities firm, which will take it a step forward in becoming a mega investment bank.

A mega investment bank can issue promissory notes with a maximum limit of 200% of its equity with a maturity of one year or less. Mirae Asset can now finance and manage promissory notes up to 18.2 trillion won ($ 16.19 billion).

“We will not overtax our qualification on issuing short-term finance bonds. Instead, we will make every effort to provide high quality financial products to clients and manage funding stably in accordance with government policy goals, ”said an official from Mirae Asset.

Mirae Asset first applied for the license in July 2017, but the decision was delayed for nearly four years due to several issues, including sanctions on internal trade between affiliates and an alleged violation of national law on foreign exchange transactions.

The financial regulator had previously authorized three local securities firms to manage mega-investment banks – Korea Investment & Securities, NH Investment & Securities and KB Securities.

By Jie Ye-eun ([email protected])

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