South Korea's NH Investment & Securities Co. Ltd. is expected to get a license from the Financial Services Commission to issue secured short-term debt as promissory notes, a requirement in becoming a full-service investment bank, Yonhap News Agency reported May 23.
The Securities and Futures Commission under the FSC will approve the company's application for a license to issue short-term notes May 23, according to the report. The ability to raise money market financing within 200% of equity capital effectively gives the company full-service investment bank status in South Korea.
The FSC allows securities companies with equity capital of 4 trillion won or more to become a full-service investment bank.
NH Investment & Securities' equity capital amounted to 4.78 trillion won at the end of March, which gives it a maximum capacity of nearly 10 trillion won to raise financing on the money market by issuing notes of less than one-year maturity.
Korea Investment & Securities Co. Ltd., which obtained the license in November 2017, is currently the only full-service South Korean investment bank.
KB Securities Co. Ltd., Mirae Asset Daewoo Co. Ltd. and Samsung Securities Co. Ltd. are also eligible for full-service investment bank status, but they are still in the early stages of license application.
As of May 22, US$1 was equivalent to 1,074.91 South Korean won.
