Daishin Securities Cuts Margin Lending and Delinquency Interest Rates

Daishin Securities will lower its margin lending interest rate from the current 8.0% per annum to 5.0% per annum, a reduction of 3.0 percentage points.

According to Daishin Securities on August 13, an annual rate of 5.0% is the lowest in the industry. The delinquency interest rate on unsettled accounts during the investment process will also be reduced from 12.0% per annum to 7.2% per annum.

This measure is intended to alleviate the short-term funding burden for investors amid increased volatility in the financial markets, and to enable a more flexible response to unexpected funding needs.

Margin lending allows investors to borrow the anticipated proceeds from selling their holdings without waiting until the actual settlement date. With this rate cut, customers who use this service can now secure short-term funding at the lowest interest rates within the securities industry.

The delinquency interest rate on unsettled accounts will also be significantly lowered. In unsettled transactions, a securities firm initially lends a certain amount to an investor to purchase stocks, with repayment required within a specified period. If the investor fails to repay within the deadline, delinquency interest is charged. With this adjustment, the burden on customers resulting from late payment is expected to decrease.

The new interest rates will take effect from August 21. For margin lending, a 5.0% annual rate will apply to new loans executed after the implementation date, while unsettled accounts that occurred prior to the implementation will be subject to a 7.2% delinquency interest rate, calculated on a daily basis from the effective date.

Lee Yongwook, Head of WM Business Promotion Department at Daishin Securities, stated, "We have effectively reduced financial burdens so that our clients can focus on investing in a more stable environment," adding, "We will continue to introduce various support measures to enhance customer convenience and strengthen our competitiveness in financial services."

This content was produced with the assistance of AI translation services.