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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Samsung Securities is facing delays in securing regulatory approval to enter the commercial paper (CP) issuance business, even as competitors move ahead with full-scale operations.
According to the financial investment industry on Jan. 12, Samsung Securities has yet to receive approval from the Financial Services Commission, while rivals that applied at the same time have already cleared the process. Among five brokerages—Kiwoom, Meritz, Samsung, Hana, and Shinhan Investment—that applied in the second half of last year, only Meritz Securities and Samsung Securities remain unapproved.
Commercial paper issuance allows securities firms to raise short-term funding by issuing notes backed by their own credit, with maturities of up to one year and sales capped at twice their equity capital. The system is favored for its relatively simple issuance process and funding flexibility.
Market watchers suggest that regulatory concerns over past improper sales practices may be weighing on Samsung Securities’ application, noting that related sanction risks may need to be resolved before approval is granted.
The approval process involves multiple steps, including document review, evaluation by an external advisory committee, on-site inspections, deliberation by the Securities and Futures Commission, and final approval at a regular meeting.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
