Daishin Securities Passes KRX Deliberation... Set to Be Designated as the 10th Comprehensive Investment Business Entity
by Kim Minyoung
Published 19 Dec.2024 15:23(KST)
Upon Final Approval, the 10th Domestic Private Equity Fund Manager
Business Area Expansion Possible Upon Private Equity Fund Manager Designation
Daishin Securities is on the verge of being designated as a Comprehensive Financial Investment Business Operator (CFIBO), expected to become the 10th CFIBO in South Korea.
According to financial authorities on the 19th, the Financial Services Commission's Securities and Futures Commission approved Daishin Securities' CFIBO designation agenda at the 22nd meeting held the previous day. The Financial Services Commission meeting is scheduled for the 24th, and upon final approval, Daishin Securities will become the 10th CFIBO in the country. Currently, there are nine CFIBOs: Mirae Asset, Korea Investment, NH Investment, KB, Samsung, Hana, Shinhan Investment, Meritz, and Kiwoom.
A CFIBO is a securities company that meets the requirement of having over 3 trillion KRW in equity capital and applies for designation to the Financial Services Commission. The designation decision is made after reviewing risk management capabilities related to credit extension operations, internal control standards, and other factors. Daishin Securities fulfilled the qualification for CFIBO designation by conducting a paid-in capital increase earlier this year, achieving 3 trillion KRW in equity capital on a separate basis as of the end of Q1.
Once designated as a CFIBO, the company can expand its business scope. The credit extension limit increases from 100% to 200% of equity capital, and it can also provide prime brokerage services (PBS), including lending funds to hedge funds and offering consulting services.
Daishin Securities aims to obtain approval as a super-large investment bank (IB) in the future. By exceeding 4 trillion KRW in equity capital and qualifying as a super-large IB, it can enter the issuance of commercial paper business.
Earlier, Eui-ryong Lee, Chairman of Daishin Financial Group, stated in this year’s New Year’s address, "The group’s strategic goal for this year is to achieve 4 trillion KRW in securities equity capital and advance into a super-large securities firm."
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