2026Securities firms’ cash management rules to expand to all firms

The government and financial authorities have announced plans to extend liquidity management regulations for securities firms to all firms. Liquidity refers to a company’s capacity to raise cash immediately when it needs to make urgent payments. The plan broadens the scope of the regulations compared with the current rules.

The new standards include a new liquidity ratio. This indicator measures how well a securities firm can withstand short-term outflows of funds. The financial authorities are expanding the scope of the regulations to apply this standard to all securities firms.

Haircuts will be applied to stocks and bonds. A haircut is a method of valuing assets held at less than their book price when they are sold immediately. This means stocks and bonds will not be treated as equivalent to cash.

Contingent liabilities are also included in the calculation of the new liquidity ratio. A contingent liability is a commitment that is not an immediate debt but that a company may have to pay depending on market conditions or contractual terms. The calculation takes into account even the hidden burdens of securities firms.

Discussion also turned to ESG disclosure. ESG disclosure is a system for informing investors about environmental, social and governance-related information. Opinions were raised that delaying its introduction could instead increase the burden on companies, and that the scope of companies required to disclose should also be expanded.

Research heads at securities firms also shared their views on the direction of the domestic stock market. They assessed that the KOSPI and KOSDAQ are at a point where they need to decide on a direction. In the real estate market, this year, 81% of Seoul apartment transactions were 15million won or less.