[비즈한국] The birth of a Korean-style Goldman Sachs is bringing revolutionary changes to the domestic capital market. The Financial Services Commission has granted "Investment Management Account (IMA)" authority to Korea Investment & Securities and Mirae Asset Securities006800, while authorizing "promissory note" business for Kiwoom Securities039490. While this might sound like industry jargon, it represents a very practical change for retail investors. It offers new options to investors who have been feeling lost between low deposit interest rates and high stock market volatility, and it could significantly change how individuals access corporate finance assets.
First, an IMA is structured to pool multiple corporate finance assets within a single account. It carries characteristics between a bank deposit and a financial investment product. The securities firm takes responsibility for repaying the principal at maturity, and investors receive returns based on the investment performance. While stable, it does not allow for immediate withdrawal of the principal like a bank deposit if canceled early. For this reason, it is a product suitable for parking long-term capital.
Through this account, retail investors can now indirectly participate in the corporate finance market, which has historically been dominated by institutions or ultra-high-net-worth individuals. IMAs are fundamentally designed as closed-ended products for one year or longer and can hold various assets, ranging from high-grade corporate bonds and loans to small-to-medium enterprises (SMEs) and startups, to acquisition finance and alternative investments. The target return after fees is projected to be around 3.5% for stable types and up to the 6% range for investment types. It is an area worth considering for investors who want higher returns than bonds but find the volatility of stocks burdensome.
However, there are points to note before calling the IMA a "deposit substitute." Principal protection is only applied at maturity. If canceled in the middle, you may face penalties or incur a loss of principal, so it is essential to check the terms and conditions. While not protected by the Korea Deposit Insurance Corporation, the securities firm is obligated to repay the principal unless it goes bankrupt. Most importantly, since each securities firm has different corporate finance capabilities and risk management skills, investment performance will vary.
A promissory note is a short-term, fixed-rate product with a maturity of one year or less, issued under the securities firm’s own credit. While it may look similar to a bank deposit, it is clearly different in that it lacks deposit insurance. Interest rates are expected to be 1–2 percentage points higher than market short-term rates because securities firms generate profit by deploying these funds into corporate loans and various investment assets.
The nature of promissory notes has also changed with this regulatory reform. To expand "productive finance," the government has mandated that by 2028, 25% of funds from promissory notes and IMAs must be invested in venture capital. This includes loans to SMEs and startups, corporate bonds rated BBB or lower, KOSDAQ venture funds, and high-yield funds. As the proportion of stable assets is reduced, the securities firms' risk management capabilities have become more important than ever.
So, how should retail investors utilize these changes? Until now, the assets available to individuals were limited to deposits, bonds, public funds, ETFs, and stocks. Now, a group of medium-risk, medium-return products—IMAs and promissory notes—has been added. The presence of these two products will likely become even more significant in periods where interest rate cuts are anticipated.
For short-term surplus funds, promissory notes can provide higher interest rates than deposits. However, since they are not protected by deposit insurance, you must check the credit rating of the securities firm. On the other hand, for investors who are willing to tolerate a certain level of volatility for medium returns, an IMA is more suitable. It is subject to stricter regulations than bond funds, offers a more transparent management structure, and has the effect of directly participating in long-term corporate finance.
Lim Hee-yeon, a research fellow at Shinhan Securities, stated, "Unlike promissory notes, IMAs have a higher proportion of long-term investments and are subject to a mandatory 5% loss provision, which makes them difficult to contribute to short-term earnings." She added, "However, because they are account-based products that combine higher potential returns than bank deposits with asset management functions, they are likely to absorb demand from customer segments aiming for asset growth."
This change is significant not only because the variety of products has increased, but also because the competitive landscape for securities firms is shifting from "fee competition" to "investment performance competition." Ultimately, retail investors should approach this from the perspective of "choosing a securities firm that excels at corporate finance." As performance data for IMAs and promissory notes accumulates, the performance gap between securities firms will likely become increasingly apparent.
While the path for retail investors to access corporate finance assets has been extremely limited, the door has now opened. Securities firms have already finished their preparations; the choice now lies with the individual investor.