KB Securities gets approval to issue promissory note

The KB Securities head office on Yeouido, Seoul / Courtesy of KB Securities

By Jhoo Dong-chan

KB Securities has received the green light to issue a promissory note for the third time among local brokerages after Korea and NH Investment & Securities.

According to the Financial Services Commission (FSC), the Securities Futures Commission (SFC) decided to allow the securities unit of KB Financial Group to issue the promissory note. The SFC is the auditing unit under the FSC.?

The decision is subject to final approval during the regulator's regular meeting on May 15.

Under related rules, a securities firm with 4 trillion won ($3.39 billion) worth of equity capital is categorized as a mega investment bank, the only entity allowed to issue a promissory note with a maximum limit of 200 percent of its equity capital.

KB Securities is the nation's fourth-largest brokerage with current capital of 4 trillion won.