KSD Eases Korea Bond Access for Foreign Investors With One-Stop Financing Service
A new integrated financial service that allows foreign investors to both hold South Korean government bonds in custody and obtain financing has officially begun operations. The Korea Securities Depository (KSD) said on Aug. 21 that it signed its first agreement with a foreign investor to provide its
The Korea Securities Depository (KSD) has launched a new one-stop financing service for foreign investors, allowing them to hold South Korean government bonds in custody and obtain financing under a single account. This development comes after three months of discussions and marks the first time KSD has supported domestic collateral transactions for foreign investors.
The service covers repurchase agreements, collateral transactions involving over-the-counter derivatives, and securities lending and borrowing. By consolidating securities custody and financing transactions, KSD aims to simplify investment infrastructure and lower barriers to entry for foreign capital seeking access to South Korea's financial markets.
KSD Chairman Lee Yoon-soo expressed optimism that this service will further improve foreign investors' access to and convenience in Korea's bond market, and that KSD will actively support their participation in domestic and cross-border collateral transactions.
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