KB Securities Opens Margin Repayment Stock Collateral Loan Service

[Asia Economy Reporter Oh Ju-yeon] KB Securities announced on the 5th that it will start a margin repayment sell-stock collateral loan service.

The margin repayment sell-stock collateral loan service is a service where customers trading stocks on margin who incur a cash margin deficit on the day of margin payment will have a sell-stock collateral loan automatically executed within the available loan amount range, thereby repaying the margin deficit.

Accounts eligible for margin trading can place orders exceeding their balance, but if a cash margin deficit occurs, the account will be designated as a margin freeze account if the deficit is not repaid within 3 business days including the purchase day. Once designated as a margin freeze account, margin trading is prohibited at all securities firms for 30 days, and trading is restricted to within the held balance, causing inconvenience.

However, for accounts that apply for the margin repayment sell-stock collateral loan service, even if a margin deficit occurs through margin trading, the sell-stock collateral loan is automatically executed on the day the deficit occurs, preventing the designation of a margin freeze account in advance. Additionally, it can be used at a lower interest rate than overdue interest, providing convenience to customers.

Lee Hong-gu, Head of WM Division, said, "This service was prepared entirely for customer convenience by reducing the inconvenience of having to separately apply for a sell-stock collateral loan after selling stocks to repay margin deficits, preventing margin freeze account designation, and avoiding overdue interest occurrence." He added, "We will continue to strive to improve loan-related services to suit customer convenience."

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