“Limit exhausted”… Mirae Asset Daewoo also temporarily suspended following Samsung, Eugene Investment and Daeshin Securities
Credit loan balance of 21 trillion won… More than 2 trillion won this month alone
As the’debt investment’ of investing in stocks with debt due to the booming stock market continues in the new year, the movement of securities companies to temporarily suspend credit loans and loans secured by deposits is spreading. The credit loan balance has exceeded 20 trillion won in the new year and is hitting record highs every day.
According to the financial investment industry on the 18th, major securities companies such as Mirae Asset Daewoo, Samsung and Daeshin Securities and Eugene Investment & Securities recently stopped new credit loans and loans secured by deposits.
Samsung Securities was the first place to temporarily suspend credit loans this year. Samsung Securities decided to temporarily suspend new credit loans on the 11th and applied it from the 13th. Following this, Eugene Investment & Securities stopped not only credit loans, but also loans secured by deposits from the 15th.
Daishin Securities maintained a temporary suspension of loans secured by deposited securities, and suspended new credit loans from the 18th until separate notice, and Mirae Asset Daewoo will temporarily suspend loans secured by deposits from the 20th.
The reason for the temporary suspension of credit loans and loans secured by securities deposits explained by these securities companies is the limit. According to the Capital Markets Act, the credit limit of securities companies is limited to within 100% of equity capital. In the case of comprehensive financial investment business operators with equity capital of 3 trillion won or more, up to 200% is possible for SMEs and corporate financial services.
Major Korean securities firms, including Mirae Asset Daewoo, Korea Investment & Securities, Samsung Securities, and KB Securities, temporarily suspended new loans last year as debt investment surged.
An official at a securities company said, “Based on the limits set by the Capital Market Act, we are managing the limits by setting our own standards separately.” It is to do,” he explained.
In fact, the credit loan balance, which has exceeded 20 trillion won this year, continues to increase day by day, breaking a record high. According to the Financial Investment Association, the credit loan balance, which was 19.221.4 billion won at the end of last month, surpassed 20 trillion won to 20,122.3 billion won on the 7th and increased to 21,2826 billion won on the 14th. This year alone, it has increased by 10.72% (2.612 trillion won) in 9 trading days. Compared to the balance of credit loans (9,5432 billion won) on January 14 last year, it surged more than twice (123.01%).
Concerns over counter trading are also growing as debt investment increases. When a customer purchases stock with a credit loan and fails to repay the borrowed money within maturity, the brokerage company is forced to dispose of the stock regardless of the customer’s intention through counter trading.
In this regard, Bank of Korea Governor Lee Ju-yeol said at a press conference held after the Financial Monetary Committee on the 15th, “Expanding investments based on excessive leverage can cause losses that are difficult for investors to bear if price adjustments are made. There is a bar.
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