Hanwha Investment & Securities Launches Industry's First "Stock Loan Switching" Service

Hanwha Investment & Securities announced on May 26 that it has launched the industry’s first “Stock Loan Switching” service in the financial investment sector.

This new service allows customers to transfer their high-interest stock-backed loans to Hanwha Investment & Securities without having to repay their existing loans or sell their held stocks, making the switching process simple and convenient.

Previously, when transferring loans, the existing stocks were not recognized as collateral, which sometimes damaged customers’ portfolios. With this new service, however, customers can use MyData to check their loan eligibility in advance, helping to prevent unnecessary losses.

The Stock Loan Switching service from Hanwha Investment & Securities was recognized for its social contribution and was selected as an innovative financial service by the Financial Services Commission last year. After obtaining regulatory exemptions, it became the first service of its kind in the financial investment industry.

Because the Stock Loan Switching service involves transferring the collateral stocks from the existing loan, the transfer of stocks must be completed on the same day that the loan from the other securities firm is repaid. Additionally, if the switching application date and the stock trading date are the same, the switch may not be possible if settlement is not completed, so customers must ensure that stock settlement is finalized.

Hong Wonil, Executive Director of the WM Strategy Division at Hanwha Investment & Securities, stated, “We launched this service to provide customers with tangible interest rate benefits and reduce their interest burden,” adding, “We will continue to develop a variety of services that enhance customer convenience in the future.”