Samsung Securities will launch its first issued commercial paper product based on its own credit and begin full-scale sales from Sept. 21.

Samsung Securities said on Sept. 17 that, in line with the start of its issued commercial paper business, it will introduce both promotional and standard issued commercial paper products.

Issued commercial paper is a short-term financial product with a maturity of less than 1 year that is issued based on the issuer’s own credit by securities firms designated as super-sized investment banks with at least 4 trillion won in equity capital.

To mark the launch of its first product, Samsung Securities will sell promotional issued commercial paper. It will offer 2 to 90-day products at an annual interest rate of 5.5 percent to new customers from September and to customers with a total balance of less than 1,000,000 won as of the end of August. The subscription limit is 1,000,000 won per person and the total issuance limit is 10 billion won.

For customers holding Samsung Securities’ Comprehensive (01) account, it will sell 1-year issued commercial paper at an annual interest rate of 4.3 percent. The subscription amount is 1,000,000 won to 300 million won per person and the total issuance limit is 100 billion won. Both promotional products will close early if the issuance limit is exhausted.

It will continue to sell standard issued commercial paper products after the promotional sales end.

As of Sept. 11, rates for standard products are 4.6 percent a year for the savings type and 2.55 percent a year for the on-demand type. By term, rates are 2.65 percent a year for 2 to 90 days, 3.2 percent for 91 to 180 days, 3.6 percent for 181 to 270 days, 3.95 percent for 271 to 364 days and 3.95 percent for 1 year. All rates are before tax.

Samsung Securities plans to expand customers’ options for managing short-term funds and choosing wealth management products through the launch of issued commercial paper.

A Samsung Securities official said, "With this issued commercial paper launch, customers have additionally secured stable assets that are not swayed by market conditions," and added, "We hope it will help customers manage their assets."