Toss Securities Establishment Countdown... Preliminary Approval Proposal to Be Submitted to the Securities and Futures Commission on the 11th

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] The establishment of a securities company by Viva Republica, the operator of the simple remittance service 'Toss,' has entered the final countdown.

According to financial authorities on the 10th, the Securities and Futures Commission under the Financial Services Commission will discuss the preliminary approval plan for the establishment of a securities company applied for by Viva Republica at its regular meeting on the 11th. This marks the official progress about nine months after Viva Republica applied for preliminary approval for financial investment business in June last year.

Viva Republica's preliminary approval application was once suspended during the Financial Supervisory Service's review process due to concerns about unstable capital structure. The financial authorities pointed out that 75% of Viva Republica's capital of 13.4 billion KRW consisted of Redeemable Convertible Preferred Stocks (RCPS).

RCPS are stocks that investors can exercise redemption rights under certain conditions and are a common capital-raising method for startup companies. However, the financial authorities judged that RCPS, which have debt-like characteristics, cannot be considered true capital and that such a capital structure is inappropriate for securities businesses.

Accordingly, Viva Republica held an extraordinary general meeting of shareholders in November last year and converted all previously issued RCPS into convertible preferred stocks. This decision led to the resumption of the Financial Supervisory Service's review, and the agenda will be submitted to the Securities and Futures Commission on the 11th.

If the preliminary approval plan passes the Securities and Futures Commission, it will go through the Financial Services Commission's review process. Afterward, once physical and human facilities are established and the final approval is obtained, securities business can begin immediately.

This content was produced with the assistance of AI translation services.