Seoul: The country's financial regulator has granted licenses to Mirae Asset Securities and Korea Investment and Securities to operate investment management accounts (IMAs). This decision marks a significant development for local brokerages aiming to expand their business portfolios and enhance their asset base.

According to Yonhap News Agency, the IMA scheme, initially proposed in 2017, offers brokerages more opportunities to increase assets under management and raise funds under relaxed regulations. Under these regulations, IMA operators can raise funds up to 300 percent of their capital base through the sale of commercial papers.

As of the third quarter, Korea Investment and Securities reported equity capital of 12 trillion won (approximately US$8.22 billion), with outstanding commercial papers amounting to 18.7 trillion won. Mirae Asset, meanwhile, had a capital base of 10.3 trillion won and 8.3 trillion won in outstanding commercial papers. With the recent regulatory approval, both Mirae and Korea Investment can raise an additional 35 trillion won for investments.

The Financial Services Commission (FSC) mandates that IMA-operating brokerages invest at least 25 percent of IMA deposits and funds raised through commercial paper issuance in promising high-tech sectors. This initiative is part of a broader strategy by financial authorities to nurture homegrown, large-scale investment banks modeled after global giants like Goldman Sachs.

This move aligns with the Lee Jae Myung government's push for productive finance, encouraging financial companies to significantly contribute to funding high-tech and potentially risky but promising sectors.