Samsung Securities said on the 17th that it will begin selling promissory notes, short-term financial products issued on the strength of its own credit, from Sept. 21 in its first offering of the instrument.
Promissory notes are financial products with maturities of up to one year that only brokerages designated as mega investment banks, those with equity capital of 4 trillion won or more, are allowed to issue.
Samsung Securities is also rolling out promotional products. Clients who open accounts this month or later, and existing clients whose total balance was below 1 million won as of the end of last month, will be offered an annual rate of 5.5% on notes with maturities of two to 90 days, capped at 1 million won per person. Holders of comprehensive accounts can receive an annual rate of 4.3% on one-year notes for amounts from 1 million won up to 300 million won. The promotional offerings are capped at 10 billion won and 100 billion won respectively, and will close early once the limits are reached.
Even after the promotional products close, clients can still take advantage of rates across a range of maturities through regular promissory notes. Installment-type notes pay an annual 4.6% and open-ended notes 2.55%, while fixed-term notes are available at 2.65% for two to 90 days, 3.2% for 91 to 180 days, 3.6% for 181 to 270 days, 3.95% for 271 to 364 days and 3.95% for one year.
The brokerage is also running an event for clients who buy the notes. Those who meet certain balance-growth conditions will be entered into a drawing for a 50,000-won fuel voucher or one share of Samsung Electronics stock, and some clients will receive coffee coupons.
Amounts used to buy promissory notes after selling stocks or other products held in an existing account, however, will not count as an increase in assets. Only the portion of additional deposits actually used for net purchases of the notes will be recognized.
"With this launch of promissory notes, our clients now have one more stable asset management tool that is not shaken by market conditions," a Samsung Securities official said.
