Korean Financial Commission Designates Major Investment Firms, Enhancing Market Opportunities
On the 19th, the Financial Services Commission of Korea designated Mirae Asset Securities and Korea Investment & Securities as comprehensive financial investment firms (CIFs) with a capital of over 8 trillion won. This designation has sparked discussions in the securities industry regarding the potential for revenue expansion in related sectors and the synergies that may arise with traditional investment banking (IB) operations.
On the 20th, a researcher from Korea Investment & Securities noted that both the Investment Management Account (IMA) and the issuance of promissory notes are subject to a domestic venture capital supply obligation of 25% of the total procurement amount. However, only investments in A-rated bonds and mid-sized enterprises will be recognized up to 30% of the venture capital supply obligation. This measure aims to prevent concentration in low-risk assets, thereby enhancing the incentives for investments in other areas such as small and medium enterprises (SMEs) loans and investments in BBB-rated bonds.
Additionally, the National Growth Fund and Business Development Company (BDC) have been recognized as domestic venture capital. The National Growth Fund is set to launch on December 10, and related fund issuance bonds and fund contribution funds have been officially formalized as eligible investment vehicles.
The researcher expressed that Mirae Asset Securities estimates the total commission rate for IMA to be around 0.8% to 1.0% after deducting loss provisions. For clients, this means increased opportunities to invest and finance in promising long-term sectors with relatively small amounts. From the perspective of securities firms, this creates an economy of scale compared to private equity funds, as well as synergies with traditional IB sectors.
Furthermore, Kiwoom Securities anticipates that the spread related to the issuance of promissory notes will be around 1.5% to 2%, suggesting potential synergies with its Private Investment (PI) and IB sectors. Other securities firms undergoing approval processes may also receive additional licenses, actively responding to the governments productive financial transformation policies.
The researcher advocated for an increase in weight for the securities sector, highlighting the favorable environment created by these new developments.
On the 20th, a researcher from Korea Investment & Securities noted that both the Investment Management Account (IMA) and the issuance of promissory notes are subject to a domestic venture capital supply obligation of 25% of the total procurement amount. However, only investments in A-rated bonds and mid-sized enterprises will be recognized up to 30% of the venture capital supply obligation. This measure aims to prevent concentration in low-risk assets, thereby enhancing the incentives for investments in other areas such as small and medium enterprises (SMEs) loans and investments in BBB-rated bonds.
Additionally, the National Growth Fund and Business Development Company (BDC) have been recognized as domestic venture capital. The National Growth Fund is set to launch on December 10, and related fund issuance bonds and fund contribution funds have been officially formalized as eligible investment vehicles.
The researcher expressed that Mirae Asset Securities estimates the total commission rate for IMA to be around 0.8% to 1.0% after deducting loss provisions. For clients, this means increased opportunities to invest and finance in promising long-term sectors with relatively small amounts. From the perspective of securities firms, this creates an economy of scale compared to private equity funds, as well as synergies with traditional IB sectors.
Furthermore, Kiwoom Securities anticipates that the spread related to the issuance of promissory notes will be around 1.5% to 2%, suggesting potential synergies with its Private Investment (PI) and IB sectors. Other securities firms undergoing approval processes may also receive additional licenses, actively responding to the governments productive financial transformation policies.
The researcher advocated for an increase in weight for the securities sector, highlighting the favorable environment created by these new developments.
Like
0
Upvote0
- PrevNvidias Stellar Q3 Results Expected to Boost Korean Stock Market
- NextSK Hynix and Samsung Electronics Surge Following Nvidias Impressive Earnings Report
김홍*
이게 나라냐!!
김한*
정말 대책없네요.
김샛*
정말이지 이런뉴스는 올리지 말아주세요.
No comments yet.