Mirae and four others join top-tier investment banking club

Lim Chang-won Reporter

Posted : 2017-11-13 17:01 | Updated : 2017-11-13 17:01

[Photo by Kim Jong-ho]



Five securities firms were allowed to expand their businesses beyond brokerage services into investment banking businesses in a much-anticipated move aimed at enhancing their competitiveness against foreign rivals.

The top-tier investment banking club includes Mirae Asset Daewoo Securities, NH Investment & Securities, Korea Investment & Securities, KB Securities and Samsung Securities.  Korea Investment was allowed to issue and sell registered promissory notes to retail investors, while the other firms can engage in foreign exchange business.

In an effort to nurture big investment banks capable of competing with global players, the Financial Services Commission (FSC) has said securities firms with more than four trillion won (3.5 billion US dollars) in their capital would be allowed to issue one-year promissory notes and provide wider corporate financing services.

Samsung Securities, a key financial arm of South Korea's largest conglomerate, and other firms have increased their capital to join the ranks of large-sized investment banks. Financial regulators have dismissed concerns that large investment banks would absorb a massive amount of funds.

At the end of June, Mirae Asset Daewoo's equity capital was estimated at 7.1 trillion won, followed by NH Investment's 4.7 trillion won.