Kiwoom Securities: "Committed to Invigorating Productive Finance... Full-Scale Venture Capital Supply"

Kiwoom Securities announced on November 19 that it has received approval from the Financial Services Commission to operate a short-term financial business. With this approval, the company plans to accelerate the supply of venture capital through the issuance of promissory notes, aiming to invigorate productive finance.

Kiwoom Securities intends to focus the funds raised through promissory notes on sectors that will drive the future of the national economy, such as advanced industries, venture companies, and small- and medium-sized enterprises. In particular, the company plans to ramp up the supply of venture capital by expanding equity investments that can serve as a catalyst for the growth of innovative companies.

With the short-term financial business license, Kiwoom Securities can now issue promissory notes to raise funds up to 200% of its equity capital. As of the end of the third quarter this year, Kiwoom Securities’ equity capital stands at 5.7862 trillion won. With this approval, the company can raise up to 11 trillion won in funds.

In line with the policy objectives of the financial authorities, the company will supply at least an amount equivalent to 25% of the funds raised through promissory notes as venture capital. The company also plans to maintain an investment ratio of at least 50% of the funds raised through promissory notes in corporate finance assets. Kiwoom Securities will actively participate in policy finance initiatives promoted by the government, such as the National Growth Fund.

Notably, the company plans to leverage the experience and know-how of Daou Kiwoom Group, which grew from a venture company into a financial group, to supply venture capital. Kiwoom Securities will identify promising venture and innovative companies and provide funding through various means, including investments in venture capital (VC), equity investments, and mezzanine investments.

The company will maximize investment synergies by closely collaborating with its subsidiaries, including Kiwoom Investment, Kiwoom Private Equity, Kiwoom Asset Management, and Kiwoom Capital. In addition, Kiwoom Securities will partner with technology holding companies affiliated with major domestic universities and startup investment firms to provide a ‘Total Financial Solution’ for every stage of a venture company’s growth cycle-from acceleration, pre-IPO (pre-listing investment), IPO (initial public offering), to M&A (mergers and acquisitions).

To ensure sustainable venture capital supply and productive finance, the company will also proactively manage investment risks. Kiwoom Securities has already established a triple-layered risk management system encompassing front-line operations, risk, and audit divisions. Furthermore, the company plans to strengthen its risk management capabilities by increasing the number of risk management professionals by more than 10% annually.

The company also aims to contribute to the stable growth of customer assets through promissory notes. Kiwoom Securities plans to offer a diverse range of promissory note products, including options for customers to select their desired maturity dates. In addition, given its branchless structure, Kiwoom Securities will provide customers with competitive deposit interest rates by leveraging high operational efficiency.

Kiwoom Securities CEO Eom Joosung stated, “With the approval for short-term financial business, we will contribute to enhancing the dynamism of the capital market by supplying venture capital,” adding, “We will also provide stable and competitive financial products to Kiwoom Securities customers.”

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