Major Securities Firms Discuss Formation of 'Second Chaean Fund'

Nae Jae-cheol, Chairman of the Korea Financial Investment Association, Meets with Securities Company CEOs to Discuss Support Review

Nae Jae-cheol, Chairman of the Korea Financial Investment Association (Photo by Yonhap News)

Major securities firms have discussed establishing a 'second Bond Market Stabilization Fund (Cha-an Fund).' This comes in response to the recent Legoland incident, which has tightened the corporate bond market and raised liquidity concerns among securities firms.

According to industry sources on the 25th, Na Jae-cheol, Chairman of the Korea Financial Investment Association, met with CEOs of major securities firms the previous day to discuss countermeasures. Representatives from nine major securities firms, including Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities, and Samsung Securities, reportedly attended the meeting.

The discussion reportedly centered on creating a second Cha-an Fund, where large securities firms pool funds to support small and medium-sized securities firms.

Kim Ju-hyun, Chairman of the Financial Services Commission, also stated in an interview with reporters after the 7th 'Finance Day' ceremony, "If the 20 trillion won scale Cha-an Fund is insufficient, it can be increased," adding, "We will take all flexible measures considering market conditions."

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