Shinhan Investment & Securities secured an additional 2 trillion won in commercial paper (CP) limits to bolster financial soundness. This increases Shinhan Investment & Securities' total limit on repayment of short-term borrowings from about 10 trillion won to 12 trillion won.
According to the securities industry on the 22nd, Shinhan Investment & Securities held a board meeting the day before and decided to increase repayment of short-term borrowings by issuing 2 trillion won in CP. This is equivalent to 34.63% of Shinhan Investment & Securities' separate first-quarter shareholders' equity this year (577.51 billion won).
With this decision, Shinhan Investment & Securities' CP limit rose from 5 trillion won to 7 trillion won. The total aggregates limit for short-term borrowing fund also increased from 1.01668 trillion won to 1.21668 trillion won. The breakdown of the short-term borrowing fund limit is 7 trillion won in commercial paper, 1.9636 trillion won in borrowings from financial institutions, a 53 billion won overdraft limit, and 3 trillion won in other borrowing fund (including electronic short-term bonds).
Shinhan Investment & Securities said the increase in the commercial paper limit is a measure to strengthen financial soundness, not to expand liquidity for new business expansion.
A Shinhan Investment & Securities official said, "We increased the commercial paper limit by 2 trillion won to properly manage regulatory ratios such as the risk-weighted assets (RWA) ratio," adding, "It is not a move to pave the way for new business expansion."
As stock market volatility has increased recently, major securities firms are collectively raising their short-term borrowing limits. Earlier, Korea Investment & Securities Co., Woori Investment & Securities, and BNK Investment & Securities also expanded their limits to manage risk and secure operating firepower.
BNK Investment & Securities on the 24th of last month expanded its short-term borrowing fund limit by 1 trillion won, from 3.411 trillion won to 4.411 trillion won. This is equivalent to 86.12% of its shareholders' equity (116.12 billion won) at the end of last year. In particular, it doubled the limit for other borrowing fund, such as electronic short-term bonds, from 1 trillion won to 2 trillion won.
Woori Investment & Securities also resolved on the 25th of last month to add a total of 1 trillion won to the issuance limits for CP and short-term bonds. The sum of short-term borrowing fund increased from 2.35 trillion won to 3.35 trillion won. The increased limits are equivalent to 81.66% of Woori Investment & Securities' shareholders' equity (122.46 billion won) on a first-quarter 2026 consolidation basis.
Korea Investment & Securities Co. likewise added 4 trillion won in short-term borrowing fund in March, raising the limit from 15.555 trillion won to 19.555 trillion won. It expanded the CP limit from 6 trillion won to 8 trillion won (up 2 trillion won) and the other borrowing fund limit from 6 trillion won to 8 trillion won (up 2 trillion won), respectively.