Samsung Securities Launches Promissory Notes for the First Time, Sales to Begin on the 21st

[Financial News] Samsung Securities is moving ahead with the sale of promissory notes, a short-term financial product.
Samsung Securities announced on the 17th that it will launch promissory-note products on the 21st and begin full-scale sales.
To mark the launch of its first product, Samsung Securities will introduce special promotional products. New customers after this month and customers whose total balance was less than 1 million won as of the end of last month will be offered a two- to 90-day product with an annual rate of 5.5%—before tax, based on 11 days—with a limit of 1 million won per person. Customers holding comprehensive accounts will be offered a one-year product at an annual rate of 4.3%, with a limit of 1 million won to 300 million won per person. The two- to 90-day product will close early once 10 billion won has been subscribed, while the one-year product will close early once 100 billion won has been subscribed.
Customers can also subscribe to regular promissory notes after the special promotional products sell out. The installment product offers an annual rate of 4.6%, the on-demand product 2.55%, and the fixed-term product 2.65% to 3.95% annually depending on the maturity.
Promissory notes are products with maturities of one year or less that are issued on the issuer’s own credit by securities firms designated as comprehensive financial investment business operators with at least 4 trillion won in equity capital. They may issue notes worth up to 200% of their equity capital.
After the Financial Services Commission approved Samsung Securities’ authorization to operate the promissory-note business in a final resolution on the 9th, Samsung Securities became the eighth securities firm in South Korea to enter the promissory-note business. Korea Investment & Securities, Mirae Asset Securities, NH Investment & Securities, KB Securities, KIWOOM Securities, Hana Securities, and Shinhan Investment & Securities had previously received authorization to issue promissory notes.
A Samsung Securities representative said, "We hope the launch of these promissory notes will provide meaningful support for our customers’ stable asset management."

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