Financial authorities have decided to continue the review process for securities firms that have applied for licenses to operate the promissory note issuance business.
On August 28, the Financial Services Commission held a subcommittee meeting to discuss whether to suspend the review of the five securities firms (Kiwoom Securities, Samsung Securities, Meritz Securities, Shinhan Investment Corp., and Hana Securities) that have applied for licenses to operate the promissory note issuance business, and decided to proceed with the review.
Previously, last month, the Financial Services Commission requested a suspension of the review for four out of the five applicants, excluding Kiwoom Securities, citing the discovery of legal risks.
However, it is interpreted that the financial authorities decided to continue the review process, considering that a suspension could disrupt the expansion of venture capital supply.
The authorities will proceed with the review, but plan to reconsider whether to suspend it depending on the level of future sanctions. The final decision will be announced at the regular Financial Services Commission meeting scheduled for September 3.
Earlier, in April, the financial authorities announced measures to enhance the corporate finance competitiveness of the securities industry and mandated that securities firms supply 25% of the funds raised through promissory note issuance as venture capital.
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