[Edaily Reporter Kwon Oh Seok ] As the domestic stock market has shown sluggish performance since the second half of this year, the Bank of Korea raised the benchmark interest rate to 3.00%, triggering a “reverse MoneyMove” in which funds are moving back from the stock market into bank time deposits and other such instruments. In response, the securities industry is focusing its efforts on “commercial paper,” which offers interest rates in the mid-to-high 3% range. Market interest is growing, particularly as the licensing process for commercial paper—a long-standing goal of SamsungSecurities(016360)—is coming into view.

According to the financial investment industry on the 1st, the Financial Services Commission (FSC) is expected to discuss SamsungSecurities’ application for a commercial paper issuance license as early as this month during one of its regular meetings. While the FSC’s regular meetings are typically held every other Wednesday, they were suspended for the entire month of August.
SamsungSecurities has now shaken off the uncertainty that had been holding it back. This is because the Financial Supervisory Service’s sanction regarding improper business practices at its wealth management (WM) branch offices was finalized as an “institutional warning,” thereby resolving the risk of severe disciplinary action that had been obstructing the project.
Previously, in April, SamsungSecurities had cleared a major hurdle toward entering the promissory note issuance market by passing a resolution at the Securities and Futures Commission, which operates under the Financial Services Commission. However, ahead of the final hurdle—a resolution at the Financial Services Commission’s regular meeting—the possibility of severe sanctions against the WM division emerged as a variable, causing delays as the agenda item was put on hold for some time. At the time, the authorities decided to postpone the decision on whether to grant authorization until the sanction process was fully completed.
With the risk of sanctions now resolved, the groundwork has been laid for this long-cherished goal—pursued for nine years—to finally bear fruit. SamsungSecurities had been seeking authorization to issue promissory notes since 2017, but was unable to obtain approval until the Supreme Court’s acquittal in 2025, as the legal risks surrounding SamsungElectronics Chairman Jay Y. Lee affected the eligibility review of major shareholders.
Commercial paper is a short-term financial product with a maturity of one year or less, issued by mega-sized comprehensive financial investment firms with equity capital of 4 trillion won or more based on their own creditworthiness. Since it allows firms to raise funds up to 200% of their equity capital, it is considered a core business within the capital market. In the market, a total of seven firms—MIRAE ASSET SECURITIES, Korea Investment, NH INVESTMENT & SECURITIES, KB, Kiwoom, Hana, and Shinhan Investment Securities—are currently engaged in the commercial paper business.
The commercial paper market is also showing a trend of expansion compared to last year. As of the end of the first half of this year, compared to the end of last year, the average outstanding balance of commercial paper rose from 8.1383 trillion won to 10.2171 trillion won at MIRAE ASSET SECURITIES, Korea Investment & Securities from 17.8485 trillion won to 21.1403 trillion won, NH INVESTMENT & SECURITIES from 8.3173 trillion won to 9.0539 trillion won, and KIWOOM Securities from 333.7 billion won to 1.816 trillion won.
From an investor’s perspective, these products are viewed as offering distinct advantages over commercial bank time deposits. Unlike bank deposits and savings accounts, they provide a high, fixed agreed-upon rate of return without requiring complex conditions for preferential interest rates. Additionally, since maturities can be freely set in units of one day between 1 and 365 days, they are useful for managing short-term liquidity.
The interest rates are also higher than those on commercial bank deposits. Currently, the interest rates on one-year fixed-term commercial paper issued by commercial paper providers are in the high 3% range per annum, while rates on demand deposit accounts (CMA) are in the high 2% range per annum. For special promotions, rates soar to the mid-4% range. This exceeds the interest rates on one-year fixed-term deposits at commercial banks or the base rates on standard parking accounts.
Of course, while commercial paper products have the drawback of not being covered by the Depositor Protection Act, the fact that they are issued based on the credit of mega-securities firms with over 4 trillion won in equity capital—and thus offer high practical safety—is a key factor attracting capital inflows. The market expects that if SamsungSecurities, a powerhouse in the wealth management (WM) sector, enters the commercial paper market, it will enjoy a powerful halo effect based on the unrivaled brand power and strong credibility of the “Samsung” name.
As a late entrant, SamsungSecurities is highly likely to offer exceptional promotional interest rates to new and corporate clients or aggressively launch competitive high-yield products. The goal is to attract a large volume of deposits early on and significantly boost its market share. In particular, analysts predict that clients seeking returns higher than those offered by commercial bank deposits are likely to prefer the high creditworthiness and stability unique to the Samsung Group.
Ko Yeon-soo, an analyst at Hana Securities, predicted, “Although the company has not yet obtained authorization to issue promissory notes, we expect improvements in interest income and investment returns following the diversification of assets under management once authorization is granted,” adding, “Its competitiveness in the retail sector will gradually come to the fore.”
SamsungSecurities is also preparing to launch its commercial paper business. Last November, the company established a Commercial Paper Business Division under the Planning Office through an organizational restructuring, and early this year, it divided this division into two teams to build a specialized business foundation. A SamsungSecurities official explained, “Once the Financial Services Commission’s approval is finalized, we will be able to introduce new products to the market immediately following approximately three weeks of IT and product testing.”