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Samsung and Meritz join, expanding bank debenture market

Competition in South Korea's bank debenture market is widening as Samsung Securities begins sales and Meritz Securities awaits final approval. Brokerages are offering high-yield promotional rates to attract customers while managing profitability as funding costs rise. The market totaled 55.93 trillion won at end-June, up 26.0 percent from a year earlier. Despite new entrants, the largest four firms still hold most balances, while rules on risk capital and real estate exposure are tightening.