The government will allow nine large local brokerage houses to expand the scope of their foreign currency businesses starting this week to reinvigorate the local financial sector, the finance ministry said Monday.

Nine securities companies with net worth of more than 1 trillion won ($904 million), such as Samsung, Woori and KDB Daewoo, will be able to extend foreign exchange loans starting Tuesday, the ministry said.

They also will be allowed to borrow money from abroad more easily than before as the government streamlined the procedures to borrow foreign currency, which is the same level of leeway given to banks, it said

In addition, the ministry said it has lifted regulations on how much money can be borrowed before it has to be reported to the government, In the past all sums exceeding $30 million required reporting, but this has been pushed up to $50 million.

The ministry, however, said that because there is the risk that brokerages may move to borrow large sums from abroad, local regulators will keep close tabs and demand regular monthly reporting.

Brokerages will, moreover, be required to adhere to the foreign exchange soundness allotment system imposed on banks. (Yonhap0