Plan to Stimulate M&As among Securities Companies



Total of 62 securities firms operating in Korea are small in size, their business scope is mostly limited to brokerage businesses, and severely competing with each other to dominate the market. Due to such factors, the securities companies are having difficult times doing business in the domestic market.

Against such backdrop, the FSC announced its ‘Plan to Stimulate M&As among Securities Companies’ in a bid to revitalize capital markets as part of the ’10-10 Value-up Plan’.

The plan consists of three major contents: offer incentives for securities firms pursuing M&A, strengthen supervision for poorly-performing securities firms, and improve Net Capital Ratio rules.

The government is targeting to take the plan into force within the second half of next year.

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