Daishin Securities to Pay Interest on IPO Subscription Deposits, Starting Next Month

[Financial News] Daishin Securities will pay interest on IPO subscription deposits placed by customers. The move is intended to provide investors with tangible benefits even while their funds are tied up during the IPO subscription process.
Daishin Securities said on the 23rd that it will pay annual interest of 1% on IPO subscription deposits of KRW 1 million or less and 0.6% on the amount exceeding KRW 1 million.
The new interest payment criteria will apply to companies that file securities registration statements after the 21st. Since institutional demand forecasting and retail subscriptions follow the filing of a securities registration statement, IPO subscriptions eligible for actual interest payments are expected to begin next month.
IPO subscription deposits are funds that investors place with brokerages to receive allocations of newly listed shares. As popular IPOs can attract funds worth trillions of Korean won within a short period, allowing investors to earn interest during the subscription period could help ease some of the burden of managing their funds.
Lee Yong-wook, head of the WM Planning Department at Daishin Securities, said, "We decided to pay interest on IPO subscription deposits to provide customers with benefits even while their funds are held during the IPO subscription process," adding, "We will continue to expand services that provide tangible benefits to customers."
Daishin Securities has recently been introducing a series of measures to reduce the financial costs borne by customers. In July, it lowered the annual interest rate on stock sale-secured loans to 5.0%, allowing customers to receive sale proceeds before the settlement date after selling shares. It also reduced the overdue interest rate applied when unsettled receivables arise.   

[email protected] Bae Han-geul Reporter