Financial Services Commission (FSC) Vice Chairman Kwon Dae-young speaks during a business agreement meeting at Government Complex Seoul, April 17. Yonhap
The country's financial regulator said Thursday that major securities firms need to extend their support to high-risk but promising companies as part of their ongoing effort to bolster productive financing.
In a meeting with executives from Korea Investment & Securities, Mirae Asset Securities and other major securities firms, Kwon Dae-young, vice chairman of the Financial Services Commission (FSC), said they should move toward picking firms with growth potential and supporting them so they can continue to grow.
According to the FSC, seven major securities firms supplied a total of 9.9 trillion won ($6.83 billion) in risk capital in the first quarter of the year, up 25.7 percent, or 2 trillion won, from three months earlier.
The securities firms licensed to operate so-called investment management accounts (IMAs) are required to invest at least 25 percent of IMA deposits and money raised via commercial paper issuance in promising high-tech sectors.
The FSC said the ratio of risk capital supply to their IMA fundraising stood at 17.3 percent in the January-March period, topping the regulatory threshold of 10 percent or more for the year.
The ratio will be raised gradually, reaching 25 percent by 2028.
The regulator also said it will set up an investment-matching platform for promising companies with the aim of launching the platform in July.
Source: Korea Times News
