Samsung Securities Launches First Issued Commercial Paper Product... Ultra-Short-Term Promotional Rate of 5.5% Per Annum
On September 17, Samsung Securities announced that it will launch its first 'issued commercial paper' product—a short-term financial product based on the company’s own credit—and will begin full-scale sales starting September 21.
'Issued commercial paper' is a short-term financial instrument with a maturity of up to one year, and can only be issued by securities firms designated as super-sized investment banks (IBs) with over 4 trillion won in equity capital.
To mark the launch of this initial product, Samsung Securities is also introducing special promotional offerings. For new customers after September or those whose total account balance as of the end of August is less than 1 million won, the company provides a 2- to 90-day product at an annual rate of 5.5% (pre-tax, as of the 11th) up to 1 million won per person. For clients holding a Samsung Securities integrated account, a one-year product is offered at an annual rate of 4.3% for deposits between 1 million and 300 million won per person. Both promotions are subject to early closing once the issuance limit is reached (10 billion won for 2- to 90-day products, 100 billion won for one-year products).
After the promotional sales end, customers can still subscribe to the standard issued commercial paper under the following terms: installment-type at an annual interest rate of 4.6%, flexible-type at 2.55% per annum (excluding event participants), 2- to 90-day product at 2.65% per annum, 91- to 180-day product at 3.2% per annum, 181- to 270-day product at 3.6% per annum, 271- to 364-day product at 3.95% per annum, and one-year product at 3.95% per annum.
A Samsung Securities representative said, “With the launch of issued commercial paper, our clients now have one more tool for stable asset management that is not swayed by market volatility,” adding, “We hope this product will provide real and practical support for clients’ stable asset management.”
Meanwhile, Samsung Securities will provide rewards according to the net increase in total account balance after purchasing issued commercial paper. With a minimum purchase requirement of 1 million won, clients whose end-of-August balance was between 1 million and 300 million won and whose balance exceeds 300 million won by the end of October through the purchase of issued commercial paper will be entered into a drawing, where 300 people will receive 50,000 won fuel vouchers. For clients whose August-end balance was between 300 million and 1 billion won and whose balance exceeds 1 billion won by the end of October, 30 winners will be drawn to receive one share of Samsung Electronics stock. Additionally, all clients who meet the requirements will receive a coffee coupon.
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However, purchases of issued commercial paper that utilize existing assets within the account—such as stocks, products, and cash—do not count toward the net increase in assets. Even if there are additional deposits, only the amount actually used for the net purchase of issued commercial paper is recognized as an increase in assets.
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