Headquarters of Mirae Asset Securities in Seoul (Mirae Asset Securities)
South Korea’s Financial Services Commission began discussing Mirae Asset Securities’ entry into the short-term funding market on Tuesday, a move that would grant the brokerage firm official status as a mega-investment bank.
Four trillion won ($3.57 billion) of equity is a prerequisite for a mega investment bank to issue a promissory note with a maximum limit of 200% of its equity with a maturity of one year. year or less. At the end of December, Mirae Asset’s equity stood at nearly 9.35 trillion won.
The FSC’s advisory committee, the Securities and Futures Commission, will make the final decision on May 12.
The country’s top financial regulator had previously authorized the provision of short-term financing to three local securities firms – Korea Investment & Securities, NH Investment & Securities and KB Securities.
Short-term financing and issuance of promissory notes are long-awaited activities for Mirae Asset. After the merger of Mirae Asset Securities and Daewoo Securities, the local investment company applied for permission in 2017.
Until recently, he had faced hurdles such as the need to resolve issues related to allegations against holding company Mirae Asset Financial Group Chairman Park Hyun-joo. Park was charged with profiteering and foreign exchange law violations in a separate case.
By Jie Ye-eun ([email protected])