---
title: "IPO Subscription Deposit Interest: Daishin Securities Rules"
locale: en
category: knowledge_base
category_name: "Knowledge Base"
translation_status: reviewed
license: cc_by
author: "Injoys Editorial Team"
source_url: https://injoys.com/en/articles/ipo-subscription-deposit-interest-rules
published_at: 2026-10-14T22:29:37+09:00
---

# IPO Subscription Deposit Interest: Daishin Securities Rules

> Interest on IPO subscription deposits depends on the payment terms set by each brokerage and for each offering. This article distinguishes the government's proposed policy changes from Daishin Securities' rollout and explains how deposits, refunds, and estimated interest are calculated.

## Key Points

- On July 15, 2026, the Financial Services Commission identified paying interest on IPO subscription deposits as a policy initiative.
- Daishin Securities announced that its interest payment rules would apply to companies that file securities registration statements on or after September 21, 2026.
- Equal allocation does not guarantee one share, even if you meet the minimum subscription requirements.
- Calculating interest requires not only the applicable rate but also the amount used for the calculation and the number of days counted.
- The projected annual interest return in the 300-hundred-million-won range is an estimate based on assumptions, not an individual payout amount.

Interest on IPO subscription deposits depends on each brokerage’s payment terms. Daishin Securities has announced that it will pay interest on eligible IPOs. The government’s efforts to improve the system should not be taken to mean that all brokerages will pay interest.

The interest rates cited here are based on a September 23, 2026 report on Daishin Securities’ announcement.

## What is changing about interest on IPO subscription deposits?

The government plans to return earnings from the management of subscription deposits to investors. A subscription deposit is money paid before shares are allotted. The amount left after paying for allotted shares is refunded.

The Financial Services Commission included interest payments in its July 15, 2026 work report. That announcement alone does not set the payment terms for individual subscriptions. Check subsequent announcements from the Financial Services Commission to see whether a common system has taken effect.

> We will improve inconvenient and unreasonable structures in the investment process, including the payment of interest on IPO subscription deposits.

Source: the Financial Services Commission’s “Second Half of 2026 Work Report.” [Financial Services Commission press release](https://www.fsc.go.kr/no010101/87328)

| Category | Confirmed information | What to check before subscribing |
| --- | --- | --- |
| Government system improvements | Plans to introduce interest payments on subscription deposits | Subsequent announcements on the effective date and scope |
| Daishin Securities’ introduction | Announced its own payment criteria | Whether the IPO is eligible |
| Subscriptions through other brokerages | Daishin Securities’ criteria do not automatically apply | The brokerage’s notices and the investment prospectus |

## Why do you pay a subscription deposit?

A subscription deposit is money paid in advance when applying to buy IPO shares. Many retail subscriptions require 50% of the subscription amount as a deposit. Check the investment prospectus for the exact deposit rate for each IPO.

If you apply for 100 shares at an offering price of 10,000 won each, the subscription amount is 1 million won. At a 50% deposit rate, you must pay 500,000 won upfront. This does not mean you will be allotted all 100 shares.

| Item | Calculation | Meaning |
| --- | --- | --- |
| Subscription amount | Offering price × number of shares applied for | Total amount you applied to buy |
| Subscription deposit | Subscription amount × deposit rate | Amount paid in advance when subscribing |
| Cost of allotted shares | Offering price × number of shares actually allotted | Cost of the shares you acquire |
| Refunded principal | Deposit - cost of allotted shares | Amount returned when the deposit exceeds the cost of allotted shares |

The refunded principal in the table excludes subscription fees and interest. If the cost of allotted shares exceeds the deposit, you may need to make an additional payment. Check the brokerage’s allotment notice for the payment deadline.

## How do equal and proportional allotments differ?

Equal allotment is based on the number of participants, while proportional allotment is based on subscription volume. These are two ways of dividing up and allotting shares available to retail subscribers. Equal allotment does not guarantee one share to every participant.

| Category | Equal allotment | Proportional allotment |
| --- | --- | --- |
| Basic criterion | Number of participants who meet the minimum subscription requirements | Subscription volume and final oversubscription rate |
| Shares available | At least 50% of all IPO shares | Shares remaining after equal allotment |
| Effect of increasing the deposit | The equal allotment does not increase by the same proportion | The number of shares allotted may increase |
| Why the allotment may be small | Too few shares relative to the number of participants | Too few shares available relative to subscription volume |

If there are more participants than shares available for equal allotment, shares may be allotted by lottery. A large deposit does not guarantee many shares under proportional allotment either. The allotment details provided for each IPO govern. [Shinhan Investment & Securities IPO subscription guide](https://open.shinhansec.com/mobilealpha/html/CS/guidePOSS.html)

## Why were investors not receiving interest?

There was a gap in the rules governing when compensation must be paid for the use of subscription deposits. This compensation is an amount a brokerage pays for using money entrusted to it. The payment rules for ordinary deposits and subscription deposits were not the same.

In July 2026, Bizwatch reported on the lack of clarity in the relevant rules. According to the report, the Board of Audit and Inspection had called for improvements in 2013 as well. The practice of not paying interest on subscription deposits continued afterward. [Bizwatch report on the history of the rules](https://news.bizwatch.co.kr/article/market/2026/07/22/0001)

Subscription deposits have been managed through means including deposits with Korea Securities Finance. The earnings generated in the process went to brokerages and others. The aim of the proposed changes is to return earnings to investors after accounting for related costs. [Edaily report on the management of subscription deposits and interest payments](https://m2.edaily.co.kr/News/Read?mediaCodeNo=257&newsId=04175446645582744)

## What are Daishin Securities’ interest payment terms?

Daishin Securities announced that its policy applies to companies that file registration statements on or after September 21, 2026. The relevant date is not the day an investor subscribes. Check when the company filed its securities registration statement.

Yonhap News Agency reported the following rates on September 23, 2026. These are the terms announced by Daishin Securities. Do not apply the same rates to IPOs handled by other brokerages. [Yonhap News Agency report on Daishin Securities’ announcement](https://www.yna.co.kr/amp/view/AKR20260923047300008)

| Item | Announced or reported terms |
| --- | --- |
| Amounts of 1 million won or less | 1% per year |
| Portion over 1 million won | Reported as 0.6% per year |
| Calculation basis | Average daily balance of the subscription deposit |
| Calculation period | Reported as from the subscription date through the payment and refund date |
| Payment date | Payment and refund date |
| Exclusions | Canceled subscriptions and additional payments |
| Tax treatment | Tax withheld from interest paid |

The calculation and payment methods above were reported with reference to the AL Robot securities registration statement. For an actual subscription, check the terms in the latest amended statement. Pay particular attention to how the rate tiers apply and how days are counted. [Edaily report on the registration statement](https://m2.edaily.co.kr/News/Read?mediaCodeNo=257&newsId=04175446645582744)

## Calculation examples: How do you distinguish the deposit from the interest?

The deposit is calculated from the number of shares applied for; interest is calculated under separate payment terms. An annual interest rate is not the return earned over the few days your money is deposited. It must be prorated for the applicable number of days.

### Calculation for a subscription with a 500,000 won deposit

Suppose you apply for 100 shares at an offering price of 10,000 won each. The deposit rate is 50%. The interest calculation below uses an assumption to explain how the calculation works.

1. The subscription amount is 10,000 won × 100 shares = 1 million won.
2. The deposit is 1 million won × 50% = 500,000 won.
3. Assume an annual rate of 1% applies to the full 500,000 won for 3 days.
4. On a 365-day basis, interest before tax is 500,000 won × 1% × 3 ÷ 365.

Under this assumption, the interest is **about 41 won before tax**. The amount actually paid depends on the number of days counted and the tax treatment. You should also check how the brokerage handles amounts smaller than one won.

### Calculation for an application for 55,000 shares

Suppose you apply for 55,000 shares at an offering price of 15,000 won each. At a 50% deposit rate, the deposit is 412.5 million won. Rounding this down to 400 million won would make even the principal incorrect.

| Calculation item | Formula | Result |
| --- | --- | --- |
| Subscription amount | 15,000 won × 55,000 shares | 825 million won |
| Subscription deposit | 825 million won × 50% | 412.5 million won |
| Cost of shares, assuming 9 are allotted | 15,000 won × 9 shares | 135,000 won |
| Refunded principal before fees | 412.5 million won - 135,000 won | 412,365,000 won |

The allotment of 9 shares is an assumption for the calculation, not a verified result for an actual investor. An annual rate of 2% alone is not enough to calculate 60,000 won in interest. You also need the principal eligible for interest and the number of applicable days.

## What do subscription deposit volumes and the projected 30 billion won a year mean?

The figure of around 30 billion won a year is an estimate of the interest that could be returned across the market. It does not mean an amount payable to an individual or a government budget allocation. The result changes if assumptions about subscription volumes, interest rates, and other factors change.

On July 15, 2026, Money Today reported the following calculation. It used approximately 450 trillion won in annual subscription deposits as its starting point. The article did not specify the year covered by this figure. [Money Today report on the work report](https://news.nate.com/view/20260715n15601?mid=n1101)

| Condition used in the calculation | Assumption reported |
| --- | --- |
| Total annual subscription deposits | Approximately 450 trillion won |
| Average period funds are deposited | 3 days |
| Interest rate | 1% per year |
| Calculation before costs | 450 trillion won × 1% × 3 ÷ 365 ≈ 36.986 billion won |
| Projection after costs | Around 30 billion won a year |

The cumulative annual subscription amount is different from the deposit balance at any one time. The same money may be counted again if it is used for another subscription after being refunded. The 450 trillion won figure therefore does not mean that amount was tied up for an entire year.

Some individual IPOs have also attracted large deposits. MakinaRocks announced its subscription results on May 12, 2026. The company reported deposits of approximately 14 trillion won. [MakinaRocks subscription results announcement](https://www.makinarocks.ai/news/makinarocks-ipo-record-breaking/)

## Common mistake: Treating the refund and the balance eligible for interest as the same

Calculating interest from the refund alone may not match the payment criteria. The refund is what remains after the cost of shares actually allotted is deducted. The balance eligible for interest follows the brokerage’s calculation rules.

| Common assumption | What to check |
| --- | --- |
| Interest is always paid only on the money refunded | Whether the basis is the full subscription deposit or the refundable amount |
| At 1% per year, you receive 1% of the principal when it is refunded | How the annual rate is prorated for the applicable days |
| Every calendar day up to the refund date is counted | Whether the subscription and refund dates are included and how holidays are treated |
| A canceled subscription earns the same interest | Whether canceled subscriptions are excluded from payment |
| All subscription deposit interest rates are around 1% per year | The actual rate disclosed by the brokerage |

The refund date is listed in each IPO’s subscription schedule. Weekends and holidays can lengthen the time your funds are tied up. Rather than relying on a general statement that refunds take a few days, check the refund date for that IPO.

## Are an automatic refund transfer and an interest deposit the same transaction?

Even if you set up an automatic refund transfer, you must check separately whether it includes interest. The service sends the refund to a registered account. Its description alone is not enough to conclude that interest will be transferred with it.

Shinhan Investment & Securities says it transfers refunds to registered accounts on the refund date. The time transfers start and the time processing actually finishes may differ. This description does not itself mean that interest is paid on subscription deposits. [Shinhan Investment & Securities automatic refund transfer guide](https://myshinhaninvest.shinhansec.com/siw/banking-lending/subscribe/guidePOSStab2/view.do)

After the refund, check your transaction history in this order.

1. Check the actual cost of allotted shares and the refunded principal.
2. Check whether a subscription fee was deducted.
3. Check whether interest and tax withheld are shown separately.
4. Compare the amount received in the linked account with the balance in your brokerage account.

## Does earning interest also reduce the cost of subscribing?

Interest received can reduce the burden of tying up your funds. You still need to calculate the overall profit or loss from the subscription separately. Changes in the price of allotted shares are a separate matter from interest on the deposit.

- Check the subscription fee that actually applies.
- If you borrow money to subscribe, calculate the loan interest through the refund date.
- Interest you could have earned in another account is also worth comparing.
- Compare costs using the amount actually received after tax, rather than expected interest before tax.

## FAQ

### Do all securities firms pay interest on IPO subscription deposits?
The government's announcement of plans to introduce interest payments does not mean every securities firm will pay interest. Check the notices from the securities firm where you plan to subscribe and the latest prospectus for the offering.

### Which IPOs did Daishin Securities announce this would first apply to?
It announced that this would apply to companies that submitted securities registration statements on or after September 21, 2026. The investor's subscription date and the company's filing date are different.

### Does a 50% subscription deposit rate mean you buy shares at half price?
It means you deposit part of the cost of the shares upfront. The final cost is calculated by multiplying the offering price by the number of shares actually allocated.

### If I apply through equal allocation, can I receive one share?
One share is not guaranteed. If there are more participants than shares available for equal allocation, you may receive no shares, depending on the lottery results.

### What is the difference between a subscription deposit and a refund?
A subscription deposit is money you pay upfront when you subscribe. The principal portion of the refund is that deposit minus the cost of the shares actually allocated. The amount actually credited may reflect fees and how interest is handled.

### If 500,000 won earns interest at 1% per year, how much will I receive?
Assuming the rate applies to the full 500,000 won for 3 days, the interest is about 41 won before tax. This uses a 365-day year, and the actual amount paid depends on the number of days counted and tax treatment.

### Are weekends and public holidays included in the interest calculation?
Check the securities firm's calculation rules. Do not assume the calendar period through the refund date is the same as the period counted for interest.

### Will I receive interest if I cancel my subscription?
Reports on Daishin Securities' introduction of the policy in September 2026 said canceled subscriptions and additional payments would be excluded. Check the payment terms of other securities firms individually.

### Will interest be paid retroactively on deposits for past subscriptions?
The Daishin Securities announcement reviewed set an eligibility criterion based on the filing date of the securities registration statement. It does not provide grounds for retroactive payments on past subscriptions.

### Is the 30 billion won per year a subsidy distributed to investors?
It is not a subsidy but an estimate of the total interest expected to be returned to investors across the market. The estimate is based on assumptions about annual subscription deposits, the average deposit period, and the interest rate.

### If I set up an automatic transfer of my refund, will the interest be transferred with it?
Check what amount the automatic refund transfer covers. If interest is deposited separately, it may remain in your securities account, so cross-check your transaction history on the refund date.

### Where can I check the interest payment terms?
Check the notices from the securities firm handling the subscription and the latest prospectus. You can also check the company's securities registration statement and any amendments on the Financial Supervisory Service's electronic disclosure system.

## Sources

- [Financial Services Commission, Work Report for the Second Half of 2026, July 15, 2026](https://www.fsc.go.kr/no010101/87328)
- [Yonhap News Agency, Daishin Securities Offers Interest on IPO Subscription Deposits, September 23, 2026](https://www.yna.co.kr/amp/view/AKR20260923047300008)
- [Edaily, Cases of Interest Payments on IPO Subscription Deposits and Calculation Conditions, September 22, 2026](https://m2.edaily.co.kr/News/Read?mediaCodeNo=257&newsId=04175446645582744)
- [Shinhan Securities, IPO Subscription Guide](https://open.shinhansec.com/mobilealpha/html/CS/guidePOSS.html)
- [Shinhan Securities, Guide to Preparing and Applying for Subscriptions and Setting Up Automatic Transfers of Refunds](https://myshinhaninvest.shinhansec.com/siw/banking-lending/subscribe/guidePOSStab2/view.do)
- [Bizwatch, The Practice of Not Paying Fees for the Use of Subscription Deposits and Progress on System Reforms, July 23, 2026](https://news.bizwatch.co.kr/article/market/2026/07/22/0001)
- [Money Today, Annual Interest on IPO Subscription Deposits Forecast at 30 Billion Won, July 15, 2026](https://news.nate.com/view/20260715n15601?mid=n1101)
- [MakinaRocks, Announces Retail Subscription Oversubscription Ratio and Subscription Deposits, May 12, 2026](https://www.makinarocks.ai/news/makinarocks-ipo-record-breaking/)

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