Mirae Asset Securities Enters Issued Payment Business... Final Approval from Financial Services Commission

[Asia Economy Reporters Song Hwajeong and Park Jihwan] Mirae Asset Securities has obtained a license for the issuance of promissory notes (short-term finance business), becoming the fourth company to enter the promissory note business after Korea Investment & Securities, NH Investment & Securities, and KB Securities.

According to financial authorities on the 12th, the Financial Services Commission held a regular meeting at 2 p.m. and made the final approval decision on the promissory note business license for Mirae Asset Securities. It has been about 3 years and 10 months since Mirae Asset Securities applied to the financial authorities in July 2017.

The licensing process for promissory note business by financial authorities involves the securities company submitting an application, followed by the Financial Supervisory Service conducting reviews with the External Evaluation Committee and on-site inspections, and then final approval through deliberations at the Securities and Futures Commission and the Financial Services Commission regular meetings. Mirae Asset Securities applied in 2017, but the review was suspended in December of that year due to the Fair Trade Commission's investigation into 'internal transactions.' The review resumed in May last year after the Fair Trade Commission imposed corrective orders and fines without referring the case to prosecution. At the end of January this year, Mirae Asset Securities passed the Financial Supervisory Service External Evaluation Committee review, underwent on-site inspections, and last week the Securities and Futures Commission approved the license, which was finalized on this day.

The promissory note business is a financial product where money is deposited for a short term within one year and a fixed interest is paid at maturity. The issuance process is simple, and it allows continuous fund acceptance from multiple investors, making it a core business of mega investment banks (IBs). Up to twice the amount of its own capital can be issued, traded, and underwritten as short-term notes with maturities within one year, enabling expansion into various businesses such as loans to small and medium-sized enterprises, real estate financing, acquisition of shares in unlisted companies, and overseas operations.

With this license, Mirae Asset Securities will be able to raise and manage funds up to 18.2 trillion won. So far, only three securities companies?Korea Investment & Securities, NH Investment & Securities, and KB Securities?have been licensed for the promissory note business.

With Mirae Asset Securities obtaining the promissory note license, expansion of the Integrated Managed Account (IMA) business is also anticipated. The IMA business can be conducted by comprehensive financial investment business operators with more than 8 trillion won in equity capital among mega securities firms. Currently, Mirae Asset Securities is the only securities company in Korea with equity capital exceeding 8 trillion won.

A Mirae Asset Securities official stated, "We do not plan to aggressively pursue fund raising through the promissory note business," adding, "We will do our best to provide high-quality products to customers and to manage the raised funds stably in accordance with government policy objectives."

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