Friday, April 14, 2017

Samsung, South Korea, but super IB 'shareholder eligibility "stumbling block



New Business Plan Is super IB is available, such as [South Korea goyounghun financial newspaper reporters - equity securities issued to more than 4 trillion won this draft work came as a nose. But surrounding the authorized issuing commercial paper work is expected to emerge as the largest shareholder eligibility requirements showdown variables.

According to the 14th IB financial investment industry giant plans are targeting the end of April into the currently applicable Legislation Review.

Last August, the financial authorities announced the plan to improve investment bank mega development "and proposed a differential benefits to more than 3 trillion won of equity securities. More than 4 trillion won brokerage egen is possible that commercial paper issuance and foreign exchange business.

In the meantime the securities industry had an expectation of capital markets advancing government policy fees increased competition, revenue might think because of the IT system is to streamline such was not the situation.

The main point in short-term commercial paper issued by corporate finance business expansion Equity securities are more than 4 trillion won a position to look forward. But the situation was not a major shareholder eligibility requirements tteoohreumyeo difficult to predict is the bill issued at variable. Entry securities have no problem with the majority shareholder eligibility on the basis of the exception, but in accordance with the authoritative interpretation of the Financial Services Commission and Financial Supervisory situation may vary.

Currently more than 4 trillion won of equity securities is treated, such as MAS, NH Investment & Securities, KB Securities, Samsung Securities, Korea Investment and Securities. According to NICE credit evaluation Average pre-tax profit estimated the loss due to the issuance of commercial paper conducted five large brokerage houses was expected around 21.7 billion won. This is the case, assuming a 4% investment yield, 2% funding rate.

Were the most common Daewoo Mirae By the company 300 billion won NH Investment & Securities 21.2 billion won, it was a net 19.1 billion won of Samsung Securities, KB Securities 18.9 billion won, Korea Investment & Securities 18.8 billion won. When converted into yen maximum was found in an average increase of about 200 million.

Samsung Securities is the largest shareholder of Samsung Life will receive a warning sanction agencies in connection with cases of suicide insurance payments from finance up. This is likely to be a delay in issuing commercial paper work Is being raised due. Samsung Life is the majority shareholder, which has a 29.44% stake in the parent company of Samsung Securities.

Samsung Securities said, "in accordance with the Capital Market Act exemption know that the Samsung Life Insurance suicide issue is not a problem if the examination will not affect the business of the draft Asset Management, including corporate loans, mainly," he said.

Kim Go-Eun becomes slower Meritz Investment Bank Securities researcher income if you start saying "a large brokerage firms are related to the business during the third quarter" as the agency warning of Samsung Life, the largest shareholder of Samsung Securities New business expansion will be limited to one year, "an angry likely lag behind the competition exists, "he was diagnosed.

In addition, a 100% subsidiary of Cornerstone Equity Partners is impossible due to the excess of liabilities over 2015 debt payment status of Korea Investment & Securities may be bankrupt bar.

Is the law the financial investment industry, a major shareholder disqualification may include △ recent case of the five years specified, including more criminal penalties into insolvent financial institutions △ △ subsidiaries up to one year institutional shareholders warning.

Korea Investment & Securities official explained that "the problems are the responsibility of the shareholder to be recognized, but the bankruptcy of Cornerstone has no associates that the financial holding of the subsequent investment failure" and "would not be a problem for business application."

Financial authorities said late cherish Legislation currently being reviewed, but did not deny the possibility.

Finance officials are "not yet out, but there is a concrete plan to hold securities issues arise in relation to the majority shareholder qualification," he said.

Recently she received the Afro-service group is also a major shareholder eligibility intellectual from the People's Solidarity for Participatory Democracy, including with respect to the time 2014 OK Savings Bank acquisition.



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