Samsung Securities enters promissory note market

Samsung Securities has officially entered the promissory note market after receiving approval from the Financial Services Commission for short-term financial business. This marks the company’s entry into the sector after a nine-year pursuit, making it the eighth securities firm in South Korea authorized to issue these short-term financial products.

Promissory notes are short-term instruments with maturities of less than one year, issued based on the credit of large-scale investment banks. While they are not protected by depositor insurance, they attract individual investors by offering relatively high interest rates compared to bank deposits.

The expansion of the market to eight providers is expected to intensify competition among securities firms to attract capital. Existing players have already begun adjusting interest rates to maintain market share, with some offering rates as high as 4.9% for specific maturities. Samsung Securities aims to leverage its strong retail asset management base to drive growth in this new segment.