The Financial Services Commission is set to approve the investment banking businesses of major brokerage firms here to improve the local financial market.

Officials at the FSC said Tuesday that the authorities would unveil the list of approved IB-oriented securities firms later this week.

According to market insiders, the list may include KDB Daewoo Securities, Woori Investment & Securities, Samsung Securities, Korea Investment & Securities and Hyundai Securities.

Each of the five holds equity capital of more than 3 trillion won ($2.7 billion) and at least 100 operating branches at home and abroad, FSC data showed.

Though Korea had pushed ahead with the project to set up several big investment banks, the 2008 global financial crisis discouraged the nation from promoting mergers and acquisitions among big brokerage houses.

Financial authorities have actively pushed for revising laws on the capital market and financial investment business to allow bigger securities firms to issue loans to conglomerates, meeting a benchmark of advanced markets.

The policy to endorse brokerage houses’ lending could be regarded as epoch-making in terms of inducing mergers and acquisitions among major players such as KDB Daewoo and Woori Investment.

A big securities firm ― or an investment bank ― whose equity capital reaches 3 trillion won will be entitled to extend loans to conglomerates, said officials.

(kys@heraldcorp.com)