Samsung Securities will enter the commercial paper business after 9 years. It first applied for approval in 2017 but repeatedly failed to clear hurdles due to issues including major shareholder eligibility and the possibility of sanctions. With a final decision by the Financial Services Commission, the company has now formalised the business.

The Financial Services Commission held its 15th regular meeting on Tuesday and reviewed and approved a licensing proposal for Samsung Securities to operate short-term finance business.

Earlier, the FSC agenda subcommittee passed Samsung Securities’ proposal for a commercial paper business licence on Sept. 3. With the final approval at the regular meeting, Samsung Securities can operate the short-term finance business.

Commercial paper is a short-term financial product with a maturity of less than 1 year issued based on the issuer’s own credit by a so-called mega investment bank with at least 4 trillion won in equity capital.

Commercial paper operators can raise funds of up to 200 percent of their equity capital and use them for corporate finance and supplying venture capital.

Samsung Securities applied for approval to issue commercial paper after being designated in 2017 as a mega investment bank with at least 4 trillion won in equity capital, but its market entry fell through due to a major shareholder eligibility issue.

It resumed the approval process last year, but the review was suspended as the possibility of sanctions emerged following financial regulators’ inspections of key branches.

In April, after reviews by the Securities and Futures Commission and the agenda subcommittee, the FSC put the review on hold ahead of a final decision.

The review proceeded again after the level of sanctions against Samsung Securities was confirmed in July as an “institutional warning” that does not constitute a disqualifying reason for commercial paper approval.

With this approval, Samsung Securities joins Mirae Asset Securities, Korea Investment & Securities, NH Investment & Securities, KB Securities, Kiwoom Securities, Shinhan Securities and Hana Securities. The number of commercial paper operators increased to 8.

The FSC said it expects the eight firms, including Samsung Securities, to meet companies’ diverse funding needs such as supplying venture capital through commercial paper.