Daishin Securities will provide interest on subscription deposits made by investors for initial public offerings (IPOs).
The company announced on September 25 that it will pay an annual interest rate of 1% for deposits up to 1 million won and 0.6% for amounts exceeding that threshold.
The new interest rates will apply to companies that submitted their securities registration statements after September 21.
Given the subsequent procedures of institutional investor demand forecasting and general investor subscriptions, it is expected that the actual interest benefits for IPO subscriptions will begin to materialize next month.
Subscription deposits are funds that investors place with brokerage firms to secure allocations of IPO shares. In the case of popular IPOs, subscription deposits can reach several trillion won in a short period, making interest payments a significant benefit for investors.
Lee Yong-wook, head of Daishin Securities' Wealth Management Division, stated, "We decided to offer interest on subscription deposits to provide benefits during the period that customer funds are held in the IPO process. We will continue to expand services that can provide tangible benefits to our customers."
Meanwhile, Daishin Securities has been introducing customer-friendly policies aimed at reducing various financial costs for clients.
In July, the company lowered the interest rate on its pre-settlement loans, allowing customers to receive proceeds from stock sales before the settlement date, to 5.0%, the lowest in the industry. It also significantly reduced the late payment interest rate applied in cases of margin calls, easing the financial burden on investors.
Additionally, to enhance the convenience of trading U.S. stocks, Daishin recently launched an automated order service linked to stock prices. This service allows customers to set trading conditions in advance, automatically executing orders when real-time market conditions are met.
The service features various monitoring conditions based on new stock purchases and existing stock sales. Customers can set automatic orders based on target prices or returns, and a 'Trailing Stop' function is available for executing trades automatically when stock prices fluctuate within a specified range.
Monitoring times can be selected according to investment strategies, allowing for oversight of regular trading hours or the entire trading period, including pre-market and after-hours sessions (from 5 PM to 8:30 AM the following day).
However, due to rapid price changes, order surges, and circumstances at foreign exchanges and information providers, there may be delays or refusals in information transmission and order execution, so users should check related precautions before use.
* This article has been translated by AI.
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