At the end of last year, the company launched its product with a goal to accumulate 2 trillion won in deposits by the first half of the year and supply 600 billion won in venture capital to small and venture businesses. Kiwoom Securities is rapidly expanding in the commercial paper business sector. In just about three months after launching their product, the balance of commercial paper issuance has exceeded 1 trillion won.
On the 16th, Kiwoom Securities announced that the balance of commercial paper deposits had surpassed 1 trillion won as of the 10th. After receiving approval from financial authorities for the commercial paper business last November, Kiwoom Securities introduced its first commercial paper product, “Kiwoom Issued Commercial Paper,” on December 19th.
The product is divided into two types: a free withdrawal type and a fixed-term type. As of the 16th, the pre-tax interest rate for the free withdrawal type is 2.5% annually, and for the fixed-term type, it ranges from 2.5% to 3.3% annually. There are six options for the fixed-term type, ranging from 7 to 30 days up to a one-year term, with a minimum subscription of 1 million won.
Kiwoom Securities achieved the sales target of 300 billion won within a week of launch. They continued to attract customer funds, surpassing a 1 trillion won balance in commercial papers within three months. The company aims to reach a 2 trillion won deposit balance by the first half of this year.
Kiwoom Securities plans to supply 600 billion won in new venture capital this year using the funds raised through commercial papers. Commercial paper businesses are required to invest a portion of the raised funds in venture capital. Kiwoom Securities is expected to supply an amount equivalent to 10% of the funds raised through commercial papers into venture capital this year. This rate will increase to 20% next year and 25% from the following years.
A Kiwoom Securities representative stated, “We aim to establish a virtuous cycle that prioritizes investor protection while supporting corporate growth with differentiated operational capabilities, ultimately returning the fruits to investors. We will continue to offer competitive interest rates to provide quality investment assets to individual customers.”