Meritz Securities has received approval from financial authorities to operate as a comprehensive financial investment business and engage in short-term finance, marking its official entry into the commercial paper market. Following Samsung Securities this month, the number of firms authorized to issue commercial paper has now increased to nine.
The Financial Services Commission announced on the 23rd that it has reviewed and approved the designation of Meritz Securities as a comprehensive financial investment business with a capital of over 4 trillion won and its license for short-term finance during its 16th regular meeting.
As a result, Meritz Securities is now permitted to conduct commercial paper operations. Commercial paper allows comprehensive financial investment firms with over 4 trillion won in capital to issue short-term notes based on their credit to raise funds, which can be utilized for corporate finance and venture capital investments.
With this approval, the number of comprehensive financial investment firms engaged in short-term finance has expanded to nine, including Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities, KB Securities, Kiwoom Securities, Shinhan Investment Corp., Hana Securities, Samsung Securities, and Meritz Securities.
Notably, after Samsung Securities received its short-term finance license on the 9th, Meritz Securities joined just two weeks later, intensifying competition in the commercial paper market among securities firms. Financial authorities expect that funds raised through commercial paper will be utilized to meet various corporate financing needs, including venture capital supply.
For securities firms, commercial paper represents a stable means of raising large amounts of capital. Comprehensive financial investment firms with over 4 trillion won in capital can raise funds through commercial paper up to 200% of their equity, highlighting its growing importance for expanding corporate finance and diversifying revenue sources.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.