Mirae Asset Daewoo's Issuance of Commercial Paper Approval May Be Decided as Early as Next Month

Field Inspection by FSC This Month... Fourth Commercial Paper Business Upon Approval

[Asia Economy Reporters Song Hwajeong and Park Jihwan] The approval for Mirae Asset Daewoo's issuance of short-term financial instruments, which had been delayed due to sanction-related issues, is expected to be decided as early as next month. If approved, Mirae Asset Daewoo will become the fourth company to enter the issuance business following Korea Investment & Securities, NH Investment & Securities, and KB Securities.

According to financial authorities and the financial investment industry on the 17th, the approval process for Mirae Asset Daewoo's issuance of short-term financial instruments (short-term finance business) is currently scheduled for an on-site inspection by the Financial Supervisory Service (FSS) within this month. Mirae Asset Daewoo's issuance approval agenda had previously passed the FSS External Evaluation Committee (EEC) review at the end of January. The EEC, an advisory body to the FSS Governor, examined the business plan related to the issuance submitted by Mirae Asset Daewoo.

The financial authorities' approval process for issuance business involves the securities company submitting an application, after which the FSS conducts tasks such as the EEC review and on-site inspections. Subsequently, the agenda goes through deliberations at the Securities and Futures Commission (SFC) and the Financial Services Commission (FSC) regular meetings. The FSS plans to submit the agenda to the SFC and FSC meetings by next month. An FSS official stated, "We are planning an on-site inspection of Mirae Asset Daewoo within March," adding, "The issuance approval agenda for Mirae Asset Daewoo is expected to be submitted to the SFC and FSC next month."

The uncertainty regarding the issuance business approval due to the foreign exchange transaction law violation that arose earlier this year has also been resolved. This is because the prosecution's investigation into Mirae Asset Daewoo's alleged violation of the foreign exchange transaction law recently concluded without criminal sanctions. A financial authority official said, "With the conclusion of the prosecution's investigation, issues concerning the major shareholder's eligibility, which had been problematic, no longer constitute disqualifying reasons."

Previously, Mirae Asset Daewoo had been pursuing entry into the issuance business, but the review was halted in December 2017 due to the Fair Trade Commission's investigation into 'internal transactions.' The review resumed last May after the Fair Trade Commission imposed corrective orders and fines without prosecutorial referral. If approved this time, Mirae Asset Daewoo will enter the issuance business after more than three years.

Mirae Asset Daewoo plans to thoroughly prepare for the on-site inspection and other requirements. A Mirae Asset Daewoo representative said, "We have been continuously preparing for the issuance business, and if approved, we will diligently prepare to offer good products."

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