Kiwoom Securities said on the 16th that the balance of issued-note deposits surpassed 1 trillion won just three months after the launch of "Kiwoom issued notes." Kiwoom Securities plans to supply 600 billion won in new venture capital this year to help activate productive finance.
Kiwoom issued notes are divided into two types: an on-demand type with free deposits and withdrawals, and a contract type with a fixed maturity. As of this month (on the 16th), the pre-tax annual rate for the on-demand type is 2.5%, and for the contract type it is 2.5%–3.3% pre-tax per year. The contract type is divided into six options, including a 1-year type, and the minimum subscription is 1 million won.
Previously, Kiwoom Securities received regulatory approval for the issued-notes business in November last year and launched "Kiwoom issued notes" a month later. At the time, it hit the 300 billion won sales target within a week of launch. Kiwoom Securities plans to pursue issued-note sales with a target of 2 trillion won by the first half of this year.
It also plans to supply 600 billion won in venture capital this year and expand funding to small and medium-sized, venture, and innovative corporations. It will also promote activation of the secondary market for venture capital (VC), new technology business finance companies, and KOSDAQ venture funds.
Kiwoom Securities will strengthen direct investment in small and medium-sized, venture, and innovative corporations and plans to commit more than 200 billion won to investments of an equity nature targeting them. To that end, it created a dedicated venture capital investment review team in January this year.
It will also commit 200 billion won to private venture fund-of-funds. A private venture fund-of-funds is a fund-of-funds that invests in multiple venture sub-funds that invest in venture companies, created with purely private capital.
Kiwoom Securities emphasized that since receiving approval for issued notes in November last year, it has been working to expand productive finance and activate the supply of venture capital. As of the end of last year, Kiwoom Securities' balance of venture capital investments was about 750 billion won.
A Kiwoom Securities official said, "While putting investor protection as the top priority, we will establish a virtuous cycle that helps the growth of corporations with differentiated management capabilities and returns the fruits to investors," adding, "We will continue to offer competitive rates with the aim of providing high-quality investment assets to retail customers."